A review of Toy Corps financial records for 2015 provides the following information:

Net income:$1,000	Sales: $18,000	Total assets: $10,000
Debt ratio: 40%	TIE ratio: 3.0	Current ratio: 1.4
BEP ratio: 13.33%

If Toy were to restructure its operations and increase its net income by 20% (to $1,200)without affecting sales or the balance sheet (the additional profits will be paid out as dividends), by how much would its ROE increase?

The correct answer for this is 3.33% Will you show how this answer was arrived? Thanks

Select one:

A. 1.67%B. 3.33%C. 5.50%

D. 10.25%

E. 12.25%