Lloyd Inc. has sales of $150,000, a net income of $15,000, and the following balance sheet:

Cash	$17,595		Accounts payable	$39,330
Receivables	45,540		Notes payable to bank	15,525
Inventories	200,100		Total current liabilities	$54,855
Total current assets	$263,235		Long-term debt	44,505
Net fixed assets	81,765		Common equity	245,640
Total assets	$345,000		Total liabilities and equity	$345,000

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, 1.75x, without affecting sales or net income. If inventories are sold and not replaced (thus reducing the current ratio to 1.75x); 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.

x