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

INCOME STATEMENT, 2012
Sales	$	1,100
Costs		210
Interest		90
Taxes		160
Net income	$	640

BALANCE SHEET, YEAR-END
	2011		2012			2011		2012
Assets	$	3,100	$	3,400	Debt	$	1,300	$	1,400
					Equity		1,800		2,000
Total	$	3,100	$	3,400	Total	$	3,100	$	3,400

a.	Find Eagles required external funds if it maintains a dividend payout ratio of 60% and plans a growth rate of 20% in 2013. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

External fund

$

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 will its value be? (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 $1,500 and does not wish to issue any new shares of stock. What will be the value of dividend payment now?

Value

$