Question about Viktor Red Augment + DFG interaction

I've been having a lot of fun with lately. I had a question, though, about his interaction with and :
If I activate DFG then hit someone with E, assuming they take full burn from the death augment, will they take 43.2% burn from death or 36% burn? The reason I ask this is that there are two ways to think about how it would be applied:

1. E x 1.2 = 120% ; E x .3 x 1.2 = 36%
2. E x 1.2 = 120% ; 120% x .3 x 1.2 = 43.2%

Does anyone know which one it is?

Thanks!