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Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales. INCOME STATEMENT, 2019 Sales $1,000 Costs 190 Interest
Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales. INCOME STATEMENT, 2019 Sales $1,000 Costs 190 Interest Taxes 140 Net income $ 600 70 Assets BALANCE SHEET, YEAR-END 2018 2019 $ 3,450 $3,750 Debt Equity $ 3,450 $ 3,750 Total $ $ 2018 1,150 2,300 3,450 2019 1,250 2.500 3,750 Total $ $ 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.) Internal growth rate b. What is the sustainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Sustainable growth rate
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