Eagle Sports Supply has the following financial statements. Assume that Eagles assets are proportional to its sales. INCOME STATEMENT, 2017 Sales $ 900 Costs 170 Interest 50 Taxes 120 Net income $ 560 BALANCE SHEET, YEAR-END 2016 2017 2016 2017 Assets $ 2,700 $ 3,000 Debt $ 900 $ 1,000 Equity 1,800 2,000 Total $ 2,700 $ 3,000 Total $ 2,700 $ 3,000

a. Find Eagles required external funds if it maintains a dividend payout ratio of 50% and plans a growth rate of 20% in 2018. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. If Eagle chooses not to issue new shares of stock, what variable must be the balancing item? Debt Interest Dividends Retained earnings

c. What will be the value of this balancing item?