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

INCOME STATEMENT, 2015
Sales	$	1,500
Cost		290
Interest		30
Taxes		240
Net income	$	940

BALANCE SHEET, YEAR-END
		2014				2015						2014				2015
Assets		$	3,900			$	4,200			Debt		$	1,200			$	1,300
										Equity			2,700				2,900
Total		$	3,900			$	4,200			Total		$	3,900			$	4,200

a.	Find Eagles required external funds if it maintains a dividend payout ratio of 50% and plans a growth rate of 20% in 2016. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

External funding need

$

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 value will appear on the adjusted balance sheet for the balancing variable? (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 $1,400 and does not wish to issue any new shares of stock. What will be the value of dividend payment now? (Do not round intermediate calculations. Round your answer to the nearest whole number.)

Dividend

$