Lloyd Inc. has sales of $$150,000,$ a net income of $$13,500,$ and the following balance sheet:

The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industry

average, $2x,$ without affecting sales or net income. If inventories are sold and not replaced $($thus reducing the current ratio to $2x)$; if

the funds generated are used to reduce common equity $($stock can be repurchased at book value$)$; and if no other changes occur, by

how much will the ROE change? Do not round intermediate calculations. Round your answer to two decimal places.

$\%$

What will be the firm's new quick ratio? Do not round intermediate calculations. Round your answer to two decimal places.