Zorn Corporation is deciding whether to pursue a restricted or relaxed working capital investment policy. The firm's annual sales are expected to total $$2,400,000,$ its fixed assets turnover ratio equals $5\mathrm{.}0,$ and its debt and common equity are each $50\%$ of total assets. EBIT is $$145,000,$ the interest rate on the firm's debt is $11\%,$ and the tax rate is $40\%.$ If the company follows a restricted policy, its total assets turnover will be $2\mathrm{.}5.$ Under a relaxed policy its total assets turnover will be $2\mathrm{.}0.$

Assume now that the company believes that if it adopts a restricted policy, its sales will fall by $15\%$ and EBIT will fall by $10\%,$ but its total assets turnover, debt ratio, interest rate, and tax rate will all remain the same. In this situation, what's the difference between the projected ROEs under the restricted and relaxed policies? Do not round intermediate calculations.

a$.2\mathrm{.}80$ p$.$p$.$

b$.5\mathrm{.}69$ p$.$p$.$

c$.3\mathrm{.}84$ p$.$p$.$

d$.3\mathrm{.}63$ p$.$p$.$

e$.4\mathrm{.}69$ p$.$p$.$