QUESTION 2 [15 MARKS] Imagine that you own 20000 shares of a retail firm listed on the JSE. You bought these shares at R5,20 each two years ago, but the price has subsequently declined to R1,90 each. Other firms in the same sector have seen increases in their profitability and share prices. The annual general meeting (AGM) is scheduled to take place in six weeks' time. From the firm's financial statements, you have determined the information shown in Table 2. Table 2: Ratios The economic outlook is positive, interest rates are expected to decline, consumer spending is on the increase and inflation is below 3%. However, the top management seems to be divided about the issues facing the firm. NB: You are not required to calculate the ratios; however, you will need to make suggestions on how the ratios in question may be improved. 2.1 Determine what management can do to improve the firm's profitability. Use Table 2 to guide your discussion in answering the question. (10) 2.2 Determine what the investors (shareholders) can do to improve matters. Calculate what the loss will be should the firm choose to sell their shares