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5 Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales. INCOME STATEMENT, 2019 Sales Costs Interest Taxes
5 Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales. INCOME STATEMENT, 2019 Sales Costs Interest Taxes Net income $ 580 nts $ 950 180 60 130 Assets BALANCE SHEET, YEAR-END 2018 2019 $ 3,300 $ 3,600 Debt Equity $ 3,300 $ 3,600 Total 2018 $ 1,100 2,200 $ 3,300 2019 $ 1.200 2,400 $ 3,600 Total a. What is the internal growth rate of Eagle Sports if the dividend payout ratio is fixed at 60% and the equity-to-asset ratio is fixed at 2/3? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. Internal growth rate 6.44 b. What is the sustainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. Sustainable growth rate 9.67
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