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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 $ 1,300 Costs 250
Eagle Sports Supply has the following financial statements. Assume that Eagles assets are proportional to its sales.
INCOME STATEMENT, 2019 | |
---|---|
Sales | $ 1,300 |
Costs | 250 |
Interest | 60 |
Taxes | 200 |
Net income | $ 790 |
BALANCE SHEET, YEAR-END | |||||
---|---|---|---|---|---|
2018 | 2019 | 2018 | 2019 | ||
Assets | $ 4,350 | $ 4,650 | Debt | $ 1,450 | $ 1,550 |
Equity | 2,900 | 3,100 | |||
Total | $ 4,350 | $ 4,650 | Total | $ 4,350 | $ 4,650 |
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.
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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