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Eagle Sports Supply has the following financial statements. Assume that Eagles assets are proportional to its sales. INCOME STATEMENT, 2019 Sales $ 1,450 Costs 280

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

INCOME STATEMENT, 2019
Sales $ 1,450
Costs 280
Interest 90
Taxes 230
Net income $ 850

BALANCE SHEET, YEAR-END
2018 2019 2018 2019
Assets $ 4,800 $ 5,100 Debt $ 1,600 $ 1,700
Equity 3,200 3,400
Total $ 4,800 $ 5,100 Total $ 4,800 $ 5,100

a. What is the internal growth rate of Eagle Sports if the dividend payout ratio is fixed at 70% 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.)

b. What is the sustainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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