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Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales. a . Find Eagle's required external funds if
Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales.
a Find Eagle's required external funds if it maintains a dividend payout ratio of and plans a growth rate of in
Note: Do not round intermediate calculations. Round your answer to decimal places.
b If Eagle chooses not to issue new shares of stock, what variable must be the balancing item?
c What will be the value of this balancing item?
Note: Do not round intermediate calculations. Round your answer to decimal places.
d Now suppose that the firm plans instead to increase longterm debt only to $ and does not wish to issue any new shares of
stock. What is now the balancing item?
e What will be the value of this new balancing item?
Note: Do not round intermediate calculations. Round your answer to the nearest whole number.
d Balancing item
e Value
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