2. A firm had a retained earnings balance of $5 min in the previous year. In the current year, its net income is $2.5 million. If it pays $1million in common dividends in the current year, what is its resulting retained earnings balance? 3. A firm has $10 million in total assets. It has $4 million in current liabilities, $1.5 million in long-term debt, and $1 million in preferred stock. What is the total value of common equity? A firm had a retained earnings balance of $5 mln in the previous year. In the current year, its net income is $2.5 million. If it pays $1million in common dividends in the curren year, what is its resulting retained earnings balance