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Eagle Sports Supply has the following financial statements. Assume that Eagles assets are proportional to its sales. INCOME STATEMENT, 2017 Sales $ 850 Costs 160

Eagle Sports Supply has the following financial statements. Assume that Eagles assets are proportional to its sales. INCOME STATEMENT, 2017 Sales $ 850 Costs 160 Interest 40 Taxes 110 Net income $ 540 BALANCE SHEET, YEAR-END 2016 2017 2016 2017 Assets $ 3,000 $ 3,300 Debt $ 1,000 $ 1,100 Equity 2,000 2,200 Total $ 3,000 $ 3,300 Total $ 3,000 $ 3,300 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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