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Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales INCOME STATEMENT, 2017 Sales Costs Interest Taxes Net
Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales INCOME STATEMENT, 2017 Sales Costs Interest Taxes Net income 800 150 30 100 $ 520 BALANCE SHEET, YEAR-END 2016 $ 2,850 3,150 2017 2016 2017 $ 1,050 2,100 Assets Debt Equity $ 950 1,900 Total 2,850 53,150 Total $ 2,850 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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