Payne Products had $$2\mathrm{.}4$ million in sales revenues in the most recent year and expects sales growth to be $25\%$ this year. Payne would like to determine the effect of various current assets policies on its financial performance. Payne has $$1$ million of fixed assets and intends to keep its debt ratio at its historical level of $55\%.$ Payne's debt interest rate is currently $8\%.$ You are to evaluate three different current asset policies: $(1)$ a restricted policy in which current assets are $45\%$ of projected sales, $(2)$ a moderate policy with $50\%$ of sales tied up in current assets, and $(3)$ a relaxed policy requiring current assets of $60\%$ of sales. Earnings before interest and taxes are expected to be $14\%$ of sales. Payne's tax rate is $35\%.$

What is the expected return on equity under each current asset level? Round your answers to two decimal places.

Tight policy

$\%$

Moderate policy

$\%$

Relaxed policy

$\%$