TA Company is considering to establish a current assets policy
the following data are available
fixed assets	600	?thousands
Targeted debt to assets ratio	50%
Operating current liabilities	0
interest rate on all debt	10%
the current assets policy under consideration	40%	?of projected sales
expected profit before interest and taxes	15%
based on sales of	$3,000	?thousands
federal tax rate	40%
Find expected return on equity

1.	20%
2.	22%
3.	24%
4.	26%