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Question 10 4 pts Big Retailer (BR) follows a moderate current asset investment policy, but is now considering a change, perhaps to a restricted or
Question 10 4 pts Big Retailer (BR) follows a moderate current asset investment policy, but is now considering a change, perhaps to a restricted or maybe to a relaxed policy. BR's annual sales are $1.400,000; its fixed assets are $950,000; its target capital structure calls for 40% debt and 60% equity, its EBITIS $550,000; the interest rate on debt is 8%, and its tax rate is 209. With a restricted policy, current assets will be 20% of sales, while under a relaxed policy, current assets will be 35% of sales. What is the difference in the projected ROEs between the restricted and relaxed policies Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box
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