Maxwell Industries is estimating the effect on ROE of changi…

Maxwell Industries is estimating the effect on ROE of changing its current asset level in the coming year. Maxwell is considering decreasing its current assets to sales ratio of 48% to 46% while maintaining its debt-to-assets ratio at 70%. Assume that EBIT and Sales do not change when implementing this change. a. If Maxwell implements the decrease in the current assets to sales ratio, will Maxwell be pursuing a more relaxed or a more restrictive policy with respect to current assets?   b. Assuming that Maxwell makes no other significant changes what effect will implementing the decrease in current assets have on ROE and why?   c. Above we assume that EBIT does not change when we decease the current assets to sales ratio, which is unrealistic, what effect (Increase/Decrease) could such a decrease in current assets have on EBIT and why?