Lloyd Inc. has sales of $550,000, a net income of $44,000, and the following balance sheet:

Cash	$51,040		Accounts payable	$73,040
Receivables	116,160		Notes payable to bank	56,320
Inventories	360,800		Total current liabilities	$129,360
Total current assets	$528,000		Long-term debt	173,360
Net fixed assets	352,000		Common equity	577,280
Total assets	$880,000		Total liabilities and equity	$880,000

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, 2.25x, without affecting sales or net income. If inventories are sold and not replaced (thus reducing the current ratio to 2.25x); 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