Problem #4

Problem 18-16 Feasible Growth Rates (LO3) Eagle Spors Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales a. What is the internal growth rate of Eagie Sports if the dividend poyout ratio is fixed at 70 s and the equify-to-asset ratio is fixed at 2i3? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimat 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