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INCOME STATEMENT, 2019 Sales $1,700 Costs 330 Interest Taxes 280 Net income $1,020 Assets BALANCE SHEET, YEAR-END 2018 2019 $ 4,300 $4,600 Debt Equity $

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INCOME STATEMENT, 2019 Sales $1,700 Costs 330 Interest Taxes 280 Net income $1,020 Assets BALANCE SHEET, YEAR-END 2018 2019 $ 4,300 $4,600 Debt Equity $ 4,300 $4,600 Total 2018 $ BOO 3.500 $4,300 2019 $ 900 3.700 $4,600 Total References a. Find Eagle's required external funds if it maintains a dividend payout ratio of 60% and plans a growth rate of 15% in 2020. (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? 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 $1,000 and does not wish to issue any new shares of stock. What is now the balancing item? e. What will be the value of this new balancing item? (Do not round intermediate calculations. Round your answer to the nearest whole number.) a External funding need Balancing item INCOME STATEMENT, 2019 Sales $1,700 Costs 330 Interest Taxes 280 Net income $1,020 Assets BALANCE SHEET, YEAR-END 2018 2019 $ 4,300 $4,600 Debt Equity $ 4,300 $4,600 Total 2018 $ BOO 3.500 $4,300 2019 $ 900 3.700 $4,600 Total References a. Find Eagle's required external funds if it maintains a dividend payout ratio of 60% and plans a growth rate of 15% in 2020. (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? 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 $1,000 and does not wish to issue any new shares of stock. What is now the balancing item? e. What will be the value of this new balancing item? (Do not round intermediate calculations. Round your answer to the nearest whole number.) a External funding need Balancing item

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