Lloyd Inc. has sales of $200,000, a net income of $22,000, and the following balance sheet:

Cash	$	27,720		Accounts payable	$	37,800
Receivables		69,720		Notes payable to bank		26,880
Inventories		247,800		Total current liabilities	$	64,680
Total current assets	$	345,240		Long-term debt		56,280
Net fixed assets		74,760		Common equity		299,040
Total assets	$	420,000		Total liabilities and equity	$	420,000

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

ROE will increase or decrease by ____ percentage points.

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