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Problem 18-12 Using Percentage of Sales (LO2) Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales. a.
Problem 18-12 Using Percentage of Sales (LO2) Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales. 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 $900 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.)
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