Work out the return on the book value of equity for the following two firms:(5 points each for a total of 10 points)(a): Firm A has a forward looking Price Earnings ratio of 20, pays out half of its earnings, and has a market capitalization rate of 12.5%.

(b): Firm B has a Price to Book Value ratio of 3, retains 40% of its earnings, and has a market capitalization rate of 15%.