Last year Corp XYZ had $110 thousand of assets, $305,000 of sales, $20,000 of net income, and a debt ratio of 51.6%. The new CFO believes a new computer program will enable it to reduce costs and thus raise net income to $36,000. Assets, sales, and the debt ratio would not be affected. By how much would the cost reduction improve the ROE?

When calculating ROE, do not round intermediate values.

Enter your answer as a decimal with a leading zero and 4 decimal places of precision (i.e. .01234)

Enter your answer as a positive value.