If Eagle Sports Supply's 2016 dividend payout ratio is 70% and the equity-to-asset ratio is 2/3, what is the 2016 internal growth rate and sustain· able growth rate? Calculate the required external financing and the new capital structure for the two growth rates.

Income Statement, 2015

Sales..................$950

Costs...................250

Interest..................50

Taxes.....................~

Net income.........$500

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Balance Sheet, Year-End 2014 2014 2014 2015 Debt Assets $1,000 $ 900 $2,700 $3,000 Equity Total 1,800 2,000 $3,000 Total $2,700 S3,000 $2,700