Lloyd Inc. has sales of $650,000, a net income of $39,000, and the following balance sheet:

Cash	$79,170		Accounts payable	$156,975
Receivables	180,180		Notes payable to bank	73,710
Inventories	696,150		Total current liabilities	$230,685
Total current assets	$955,500		Long-term debt	238,875
Net fixed assets	409,500		Common equity	895,440
Total assets	$1,365,000		Total liabilities and equity	$1,365,000

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