Problem $18-16$ Feasible Growth Rates $($LO$3)$

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

INCOME STATEMENT, $2019$

Sales $ $1,000$

Costs $190$

Interest $70$

Taxes $140$

Net income $ $600$

BALANCE SHEET, YEAR$-$END

$2018201920182019$

Assets $ $3,450$ $ $3,750$ Debt $ $1,150$ $ $1,250$

Equity $2,3002,500$

Total $ $3,450$ $ $3,750$ Total $ $3,450$ $ $3,750$

What is the internal growth rate of Eagle Sports if the dividend payout ratio is fixed at $70\%$ and the equity$-$to$-$asset ratio is fixed at $2/3?$

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places.

What is the sustainable growth rate?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places.