QUESTION 2 REQUIRED Use the information provided below to answer the following questions. (Answers to ratios must be expressed to two decimal places.) 2.1 2.1.1 2.1.2 2.2 Return on capital employed Profit margin (Net profit margin) Calculate the earnings retention ratio of both companies and explain how shareholders can benefit from a higher retention ratio. 2.3 Compare the two companies regarding the amount of debt that each company uses to finance its assets (as a percentage). Suggest TWO (2) ways in which KLM Limited can improve its gross profit margin ratio, without increasing its selling prices. Compare and comment on the profitability of both companies by using the following ratios: 2,4 (20 Markel INFORMATION (4 marks) (4 marks) (6 marks) (4 marks) (2 marks)