PT MUDA has balance sheet data and income statement as follows:

$ 14,000 cash Accounts Receivable 70,000 210,000 supplies Total Current Assets $ 294,000 Net Fixed Assets 126,000 Total Assets $ 420,000 Sales of $ 280,000 Net income $ 21,000

Accounts Payable $ 42,000 Other Current Payable 28,000 Total Current Debt $ 70,000 Long-term Debt 70,000 Equity (common stock) 280,000 Total Debt and Equity $ 420,000

The Finance Director believes that inventory is too excessive and this can be reduced / reduced so that the current ratio is the same as the industry average of 2.70, without affecting sales or net income. If it is assumed that the inventory can be sold and can make the current ratio according to the target (2.70), and the cash proceeds from the sale of these preparations are used to buy back ordinary shares at their book value, what is the amount of Return on Equity (ROE)? Make an evaluation of the financial policy!