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