Zorn Corporation is deciding whether to pursue a restricted or relaxed working capital investment policy. The firms annual sales are expected to total $$4,400,000,$ its fixed assets turnover ratio equals $4\mathrm{.}0,$ and its debt and common equity are each $50\%$of total assets. EBIT is $$150,000,$ the interest rate on the firms debt is $10\%,$ and the tax rate id $40\%.$ If the company follows a restricted policy, it's total assets. Turnover will be $2\mathrm{.}5.$ Under a relaxed policy. It's total assets turnover will be $2\mathrm{.}2.$

What's the difference in the projected ROEs under the restricted and relaxed policies? Do not round intermediate calculations. $$ a$.1\mathrm{.}23\%$

b$.1\mathrm{.}26\%$

$q,$ c$.0\mathrm{.}97\%$

d$.1\mathrm{.}25\%$

e$.1\mathrm{.}52\%$