In its most recent year, HT manufacturing reported net income of 100 million and it had a return on equity of 20%. The company spent 60 million on advertising. An analyst decides to treat 40% of this advertising expenditure as capital expenditure and estimates the value of the advertising asset to be 80 million. They further estimate the amortisation of the advertising asset is 16 million. There is no tax. a. Re-estimate the return on equity of HT Manufacturing. (3 marks) b. Do you agree with the analysts decision to treat advertising expenses as capex? Give reasons for your answer