Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales. INCOME STATEMENT, 2012 Sales $1,400 Costs 270 Interest 80 220 Taxes Net income $ 830 BALANCE SHEET, YEAR-END 2011 2012 2011 2012 Assets $3,700 $4,000 Debt $1,000 $ 1,100 2,700 2,900 Equity Total $3,700 $4,000 Total $3,700 $4,000 a. Find Eagle's required external funds if it maintains a dividend payout ratio of 60% and plans a growth rate of 20% in 2013. (Do not round intermediate calculations. Round your answer to 2 decimal places.) External fund $ b-1 If Eagle chooses not to issue new shares of stock, what variable must be the balancing item? Debt Interest Dividends b-2 What will its value be? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Value c. Now suppose that the firm plans instead to increase long-term debt only to $1,200 and does not wish to issue any new shares of stock. What will be the value of dividend payment now? Value Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales. INCOME STATEMENT, 2012 Sales $1,400 Costs 270 Interest 80 220 Taxes Net income $ 830 BALANCE SHEET, YEAR-END 2011 2012 2011 2012 Assets $3,700 $4,000 Debt $1,000 $ 1,100 2,700 2,900 Equity Total $3,700 $4,000 Total $3,700 $4,000 a. Find Eagle's required external funds if it maintains a dividend payout ratio of 60% and plans a growth rate of 20% in 2013. (Do not round intermediate calculations. Round your answer to 2 decimal places.) External fund $ b-1 If Eagle chooses not to issue new shares of stock, what variable must be the balancing item? Debt Interest Dividends b-2 What will its value be? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Value c. Now suppose that the firm plans instead to increase long-term debt only to $1,200 and does not wish to issue any new shares of stock. What will be the value of dividend payment now? Value