Kevin Corporation is contemplating the appropriate level of current assets. Thedecision to determine the appropriate level of current assets will be based onreturn on equity. Kevin is considering two alternatives; current assets would be$60$ percent of sales or current assets would be $30$ percent of sales. Kevin's salesare $$200$ million dollars. Kevin expects its EBIT to be $$30,000,000.$ Kevin'sfixed assets total $$80$ million. Kevin has a $70$percent debt ratio. Kevin pays $12$percent interest on its debt, and Kevin has a $20$ percent tax rate.Required:a$)$ Determine the return on equity for the two policies.b$)$ Which policy has more risk? Explain.c$)$ Explain which policy you would choose.