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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 $9ee Costs 170 Interest
Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales. INCOME STATEMENT, 2019 Sales $9ee Costs 170 Interest se Taxes 12e Net income $ 560 2018 $ 3, 15e Assets BALANCE SHEET, YEAR-END 2019 $ 3,45 Debt Equity $3,450 Total 2018 $ 1.ose 2,100 $ 3, 150 2019 $ 1,150 2,380 $ 3,450 Total $ 3,150 a. What is the internal growth rate of Eagle Sports if the dividend payout ratio is fixed at 60% 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 % Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales. INCOME STATEMENT, 2019 Sales $9ee Costs 170 Interest se Taxes 12e Net income $ 560 2018 $ 3, 15e Assets BALANCE SHEET, YEAR-END 2019 $ 3,45 Debt Equity $3,450 Total 2018 $ 1.ose 2,100 $ 3, 150 2019 $ 1,150 2,380 $ 3,450 Total $ 3,150 a. What is the internal growth rate of Eagle Sports if the dividend payout ratio is fixed at 60% 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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