2. 11.25X4 - 5 Marks) a) Tessler Farms has a return on equity of 12.71 percent, a debt-equity ratio of 0.75, and a total asset turnover of 0.9. What is the return on assets? (CLO 3) b) The Rainbow Company has total sales of $713,200 and a profit margin of 8.5 percent. Currently, the firm has 12,500 shares outstanding. What are the carnings per share? (CLO 3) c) Bama Entertainment has common stock with a beta of 1.46. The market risk premium is 9.3 percent and the risk-free rate is 4.6 percent. What is the expected return on this stock? (CLO3) d) List the users of the above details of ratios (CLO3) III. Descriptive [ 6 Marks) a) Differentiate between investing and financing decision with appropriate example (CLO2) b) Comment on Creative accounting is recommended for Profit organizations (CLO1 and CLO2) c) Return on equity will be higher than return on assets if there is higher amount of debt in the capital structure. Why? (CLOI)