Clark Inc has the following balance sheet and income statement data: Cash Receivables Inventories Total CA Net fixed assets Total assets Sales Net income $ 14,000 70,000 280,000 $364,000 126,000 $490.000 $280,000 $21,000 Accounts payable Other current liab. Total CL Long-term debt Common equity Total liab. and equity $ 42,000 28,000 $ 70,000 140,000 280,000 $490,000 The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.75, without affecting either sales or net income. Assuming that inventories are sold off and not replaced to get the current ratio to the target level, and that the funds generated are used to buy back common stock at book value, by how much would the ROE change? 11.26% 13.07% @ 11.85% 12.45%