Lloyd Inc. has sales of $600,000, a net income of $42,000, and the following balance sheet: Cash Receivables Inventories $ 90,720 Accounts payable 158,760 Notes payable to bank 604,800 Total current liabilities Total current assets Net fixed assets Total assets $ 854,280 Long-term debt 225,720 Common equity $1,080,000 Total liabilities and equity $ 97,200 84,240 $ 181,440 205,200 693,360 $1,080,000 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 2.25), 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.