DAA Inc. has the following balance sheet and income statement data:

Cash	$14,000		Accounts payable	$42,000
Receivables	70,000		Other current liabilities	28,000
Inventories	260,000		Total CL	$70,000
Total CA	$344,000		Long-term debt	160,000
Net fixed assets	146,000		Common equity	260,000
Total assets	$490,000		Total liab. and equity	$490,000
Sales	$280,000
Net income	21,000

The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.80, 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? Do not round your intermediate calculations.

Group of answer choices

9.27%

8.59%

11.80%

9.99%

10.67%