a. The firm expects to generate revenues of $2,600 and have operating expenses of $2,070. If the firm's tax rate is 40 percent, what is the return on equity under each choice? Round your answers to two decimal places. Choice 1: % Choice 2: % Choice 3: % b. During the second year, sales decline to $2,150 while operating expenses decline to $1,900. The structure of interest rates becomes: Given the three choices in the previous year, what is the return on equity for the firm during the second year? Round your answers to two decimal places. Choice 1: % Choice 2: %