Lloyd Inc. has sales of $500,000, a net income of $60,000, and the following balance sheet: Cash $ 93,500 Accounts payable $ 76,500 Receivables 140,250 Notes payable to bank 39,100 Inventories 382,500 Total current liabilities $115,600 Total current assets $ 616,250 Long-term debt 164,900 Net fixed assets 233,750 Common equity 569,500 Total assets $850,000 Total liabilities and equity $850,000 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, 2.5x, without affecting sales or net income. If inventories are sold and not replaced thus reducing the current ratio to 2.5x), 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 by 21.55 percentage points What will be the firm's new quick ratio? Do not round intermediate calculations. Round your answer to two decimal places. 2.02 x