Also assuming that the engineering firm has chosen the Conservative working capital policy (that is investment of Rs 4.50 crore in current assets). The company is now examining the use of long term and short term borrowing for financing its assets. The company will use Rs. 2.50 crore of equity funds. The corporate tax rate is last 40%. The company is considering the following debt alternatives: Financing Policy Short term debt Long term debt Conservative .54 1.12 Moderate 1.00 .66 Aggressive 1.50 .16 The average effective interest rate on short term debt is last two digit percent while on long-term debt it is 13 percent. Determining the following for each of the financing policies with workings (a) Rate of return on total assets (b) Net working capital position (c) Current Ratio (d) Rate of return on total equity