Question
Eagle Sports Supply has the following financial statements. Assume that Eagles assets are proportional to its sales. INCOME STATEMENT, 2019 Sales $ 1,400 Costs 270
Eagle Sports Supply has the following financial statements. Assume that Eagles assets are proportional to its sales.
| INCOME STATEMENT, 2019 | |||
| Sales | $ | 1,400 | |
| Costs | 270 | ||
| Interest | 80 | ||
| Taxes | 220 | ||
| Net income | $ | 830 | |
| BALANCE SHEET, YEAR-END | ||||||||||||||||
| 2018 | 2019 | 2018 | 2019 | |||||||||||||
| Assets | $ | 4,650 | $ | 4,950 | Debt | $ | 1,550 | $ | 1,650 | |||||||
| Equity | 3,100 | 3,300 | ||||||||||||||
| Total | $ | 4,650 | $ | 4,950 | Total | $ | 4,650 | $ | 4,950 | |||||||
a. What is the internal growth rate of Eagle Sports if the dividend payout ratio is fixed at 60% 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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Challenges And Impacts Of Religious Endowments On Global Economics And Finance
Authors: Buerhan Saiti , Adel Sarea
1st Edition
1799812456,1799812480
