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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 $ 950 Costs 250

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

INCOME STATEMENT, 2019
Sales $ 950
Costs 250
Interest 50
Taxes 150
Net income $ 500
BALANCE SHEET, YEAR-END
2018 2019 2018 2019
Assets $ 2,700 $ 3,000 Debt $ 900 $ 1,000
Equity 1,800 2,000
Total $ 2,700 $ 3,000 Total $ 2,700 $ 3,000

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?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

b. What is the sustainable growth rate?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

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