GW Inc. is considering whether to pursue an aggressive or conservative current asset policy, as well as an aggressive or conservative financing policy.

The following information is available:

Annual sales are $1,000,000.

Fixed assets are $500,000.

The debt ratio is 40 percent.

EBIT is $100,000.

Tax rate is 30 percent.

With an aggressive policy, current assets will be 30 percent of sales; with a conservative policy, current assets will be 50 percent of sales.

With an aggressive financing policy, short-term debt will be 80 percent of the total debt; with a conservative financing policy, short-term debt will be 40 percent of the total debt.

Interest rate for short-term debt is 5 percent. Interest rate for long-term debt is 10 percent.

Determine the return on equity for the aggressive approach.