Eagle Sports Supply has the following financial statements. Assume that Eagles assets are proportional to its sales. INCOME STATEMENT, 2017 Sales $ 1,000 Costs 190 Interest 70 Taxes 140 Net income $ 600 BALANCE SHEET, YEAR-END 2016 2017 2016 2017 Assets $ 2,900 $ 3,200 Debt $ 1,100 $ 1,200 Equity 1,800 2,000 Total $ 2,900 $ 3,200 Total $ 2,900 $ 3,200

a. Find Eagles required external funds if it maintains a dividend payout ratio of 70% and plans a growth rate of 15% 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? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

d. Now suppose that the firm plans instead to increase long-term debt only to $1,300 and does not wish to issue any new shares of stock. What is now the balancing item? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Debt Interest Dividends Retained earnings

e. What will be the value of this new balancing item? Next Visit question mapQuestion 2 of 7 Total 2 of 7 Pr