Time left 1 "ABC" Compnay has the following simplified balance sheet: Cash $25,000 Accounts receivable $125,000 Inventory $190,000 Current liabilities $200,000 Equity $200,000 Long term debt $300,000 Net fixed assets $360,000 The company has been informed by its team of consultants that their average collection period (ACP) is higher than the standard and that they should decrease their ACP to 36,5 days The team of consultants suggests that the increase in cash resulting from the decrease in accounts receivable will be used to reduce the company's long-term debt. The interest rate on long-term debt is 10% and the company's tax rate is 30% The reduction in the ACPs expected to reduce the company's sales to $750,000 which will result in EBIT of an amount equal to $70,000 What is the company's expected ROE after the change in credit policy (assume a 365-day year