a) Use the most relevant financial ratios to analyse and compare trends in profitability and risk of Company A and Company B for the 2017, 2016 and 2015 years. Discuss your assessment of relative profitability and risk of both companies. b) Recommend whether Capital Investments should invest in Company A or Company B or alternatively reject both offers. Justify the recommendation based on the evaluation of risk and profitability of each company and other relevant background information obtained from the annual reports and other sources. Use knowledge that you have acquired in your company research from Q1 and refer to the relevant ratios calculated in Q2. c) Explain with reference to literature (accounting texts other than Carton et at. or journal articles) the meaning of the price earnings (PER) ratio and EPS. Describe three year trends in these ratios for Company A and discuss its relevance to the investment decision