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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 $ 1,150 Costs 220

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

INCOME STATEMENT, 2019
Sales $ 1,150
Costs 220
Interest 30
Taxes 170
Net income $ 730

BALANCE SHEET, YEAR-END
2018 2019 2018 2019
Assets $ 3,900 $ 4,200 Debt $ 1,300 $ 1,400
Equity 2,600 2,800
Total $ 3,900 $ 4,200 Total $ 3,900 $ 4,200

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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