a) Firm Riser has a net profit/pretax profit ratio of 0.6, a leverage ratio of 2, a pretax profit/earnings before interest and tax (EBIT) of 0.6, an asset turnover ratio of 2.5, a current ratio of 1.5, and a return on sales ratio of 4%. Use the DuPont system and the given data to find the return on equity (ROE) of Firm Riser. [8 marks] b) is the price to earnings (P/E) that is based on a firm's financial statements and reported in the newspaper stock listings the same as the P/E ratio derived from the dividend discount model (DDM)? Give a brief discussion based on the numerator (P) and denominator (E). [9 marks] c) The information in the following exhibit comes from the notes to the financial statements of Volcano Company and Hamster Corporation: Goodwill Volcano The company amortizes goodwill over 20 years. The company uses a bad debt allowance of 2% of accounts receivable. Hamster The company amortizes goodwill over 5 years. The company uses a bad debt allowance of 5% of accounts receivable. Accounts receivable Determine which company has the higher quality of earnings by discussing each of the two notes