2. Austin Boston Corporation's balance sheet for last year is presented below $1,500,000 1,000,000 2,500,000 2,500,000 1.500,000 Cash Accounts receivable Inventory Fixed assets Accounts payable Notes payable Mortgage Common stock Retained earnings $ 400,000 2,000,000 3,000,000 3,600,000 Total liabilities and equity $9,000,000 Total assets $9,000,000 Sales last year were $10,000,000 and they year. Net profit margin is forecasted to be 8 percent. Austin Boston plans to pay dividends of 60%. Management expects that the sales increase can be handled by existing fixed assets. How much external funds does Austin Boston need next year? $396,000 are expected to increase by 20 percent next Investment A has the following probability distribution of expected future returns. 3. Expected Return Probability (10%) 0.1 5% 0.2 8% 0.4 0.2 10% 15% 0.1 The expected rate of return for Investment A is 6.7%. What is the standard deviation of expected returns for Investment A? (Note: The expected return for the first possible state of the economy is in parentheses. What does that mean?) 6.18% 240N