Janjigian Inc. has the following balance sheet:

Cash	$ 110,000			Accounts payable	$ 175,000
Receivables	225,000			Other current liabilities	80,000
Inventories	300,000			Long-term debt	230,000
Net fixed assets	450,000			Common equity	600,000
Total assets	$1,085,000			Total liabilities & equity	$1,085,000

Last year the firm had $85,500 of net income on $2,000,000 of sales. However, the new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.0, without affecting either sales or net income. Assume inventories are sold off and not replaced to get the current ratio to 2.0, and the funds generated are used to buy back common stock at book value without changing anything else. What is the ROE after these changes are made?

a. 14.50%

b. 15.25%

c. 16.00%

d. 17.15%

e. 18.00%