CURRENT ASSETS INVESTMENT POLICY Rentz Corporation is investigating the optimal level of current assets for the coming year. Management expects sales to increase to approximately $3 million as a result of an asset expansion presently being undertaken. Fixed assets total $2 million, and the firm plans to maintain a 45% debt-to-assets ratio. Rentz's interest rate is currently 10% on both short-term and long-term debt (which the firm uses in its permanent structure). Three alternatives regarding the projected current assets level are under consideration: (1 a restricted policy where current assets would be only 45% of projected sales, (2) a moderate policy where current assets would be 50% of sales, and 3) a relaxed policy where current assets would be 60% of sales Earnings before interest and taxes should be 14% of total sales, a the federai pis state tax ateis 40% a. What is the expected return on equity under each current assets level? Round your answers to two decimal places. Restricted policy Moderate policy Relaxed policy