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, $2019$

a$.$ 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.

b$.$ What is the sustainable growth rate?

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