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Falcons Inc has the following balance sheet and income statement data Cash $14,000 Accounts payable $53,000 Receivables $70,000Other current liab. $37,000 Inventories $270,000 Total CL Total CA Long-ternm debt Common equity Total liab. and equity $90,000 $110,000 $290,000 $490,000 $354,000 Net fixed assets $136,000 Total assets $490,000 Sales Net income $23,000 $280,000 The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.41, 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?Carry out calculations to at least 4 decimal places. Enter percentages as whole numbers. Example: 3.03% should be entered as 3.03. Do not include commas or dollar signs in numerical answers.

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