Question #2 (25 marks) HBSH Ltd. is a listed public company, which is in a volatile industry. The market price of its shares is highly sensitive to its earnings. The company's annual meeting is to be held soon, and the president is concerned, expecting to be attacked strongly by the dissident group of shareholders. One problem the dissidents are expected to focus on is the depreciation policy adopted by the company. They will claim that the annual declining-balance depreciation expenses are excessive, that is, causing the shares' market price to be artificially low. Threats have even been made of suing management and the BOD to recover the resulting loss in market value, relative to shareholders in companies with less conservative depreciation policies, suffered by HSBH shareholders. President Humor Boy has asked you to help prepare a defense against the expected attack on the company's depreciation policy. Required Write a memo summarizing how you would recommend the president respond to this attack