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Eagle Sports Supply has the following financial statements. Assume that Eagles assets are proportional to its sales. INCOME STATEMENT, 2022 Sales $ 1,250 Costs 240

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

INCOME STATEMENT, 2022
Sales $ 1,250
Costs 240
Interest 50
Taxes 190
Net income $ 770
BALANCE SHEET, YEAR-END
2021 2022 2021 2022
Assets $ 3,400 $ 3,700 Debt $ 700 $ 800
Equity 2,700 2,900
Total $ 3,400 $ 3,700 Total $ 3,400 $ 3,700

Find Eagles required external funds if it maintains a dividend payout ratio of 60% and plans a growth rate of 20% in 2023.

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

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

What will be the value of this balancing item?

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

Now suppose that the firm plans instead to increase long-term debt only to $900 and does not wish to issue any new shares of stock. What is now the balancing item?

What will be the value of this new balancing item?

Note: Do not round intermediate calculations. Round your answer to the nearest whole number.

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