Lloyd Inc. has sales of $$250,000,$ a net income of $$17,500,$ and the following balance sheet:

Cash $$50,000$ Accounts payable $$54,000$

Receivables $78,500$ Notes payable to bank $34,500$

Inventories $270,000$ Total current liabilities $$88,500$

Total current assets $$398,500$ Long$-$term debt $75,000$

Net fixed assets $101,500$ Common equity $336,500$

Total assets $$500,000$ Total liabilities and equity $$500,000$

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, $1\mathrm{.}75$x$,$ without affecting sales or net income. If inventories are sold and not replaced $($thus reducing the current ratio to $1\mathrm{.}75$x$)$; 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