lloyd Inc. has sales of $$450,000,$ a net income of $$22,500,$ and the following balance sheet:

Cash $ $57,510$ Accounts payable $ $78,570$

Receivables $128,790$ Notes payable to bank $28,350$

Inventories $453,600$ Total current liabilities $ $106,920$

Total current assets $ $639,900$ Long$-$term debt $134,460$

Net fixed assets $170,100$ Common equity $568,620$

Total assets $ $810,000$ Total liabilities and equity $ $810,000$

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, $2\mathrm{.}25\backslash$times $,$ without affecting sales or net income. If inventories are sold and not replaced $($thus reducing the current ratio to $2\mathrm{.}25\backslash$times $),$ 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

$-$Select$-$

by

percentage points.

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

$\backslash$times