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Here are the abbreviated financial statements for Planners Peanuts: INCOME STATEMENT, 2019 Sales $ 3,500 Cost 2,700 Net income $ 800 BALANCE SHEET, YEAR-END 2018

Here are the abbreviated financial statements for Planners Peanuts:

INCOME STATEMENT, 2019
Sales $ 3,500
Cost 2,700
Net income $ 800

BALANCE SHEET, YEAR-END
2018 2019 2018 2019
Assets $ 4,500 $ 5,000 Debt $ 833 $ 1,000
Equity 3,667 4,000
Total $ 4,500 $ 5,000 Total $ 4,500 $ 5,000

Assume the payout ratio is 50%.

a. Calculate the internal growth rate where no external debt or equity is to be issued. (Do not round intermediate calculations. Enter your answer as a whole percent.)

b. Calculate the sustainable growth rate where the firm maintains a fixed debt ratio but issues no equity. (Do not round intermediate calculations. Enter your answer as a whole percent.)

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