Eagle Sports Supply has the following financial statements. Assume that Eagles assets are proportional to its sales.

INCOME STATEMENT, 2015
Sales	$	1,600
Cost		310
Interest		50
Taxes		260
Net income	$	980

BALANCE SHEET, YEAR-END
		2014				2015						2014				2015
Assets		$	4,100			$	4,400			Debt		$	1,400			$	1,500
										Equity			2,700				2,900
Total		$	4,100			$	4,400			Total		$	4,100			$	4,400

a.	Find Eagles required external funds if it maintains a dividend payout ratio of 70% and plans a growth rate of 20% in 2016. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

External funding need

$

b-1.

If Eagle chooses not to issue new shares of stock, what variable must be the balancing item?

	Debt
	Interest
	Dividends

b-2.	What value will appear on the adjusted balance sheet for the balancing variable? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Value

$

c.	Now suppose that the firm plans instead to increase long-term debt only to $1,600 and does not wish to issue any new shares of stock. What will be the value of dividend payment now? (Do not round intermediate calculations. Round your answer to the nearest whole number.)

Dividend

$