suppose that the firm plans instead to increase long-term debt only to $1,600 and does not wish to issue any new shares of stock. What will be the value of dividend payment now?

Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales. INCOME STATEMENT, 2012 Sales $1,600 Costs 310 Interest 50 Taxes 260 Net income $ 980 BALANCE SHEET, YEAR-END 2011 2012 2011 2012 1,400 $ 4,400 Assets $4,100 1,500 Debt $ 2,700 2,900 Equity 4,100 - 4,400 Total 4,400 $ $4,100 Total $ Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales. INCOME STATEMENT, 2012 Sales $1,600 Costs 310 Interest 50 Taxes 260 Net income $ 980 BALANCE SHEET, YEAR-END 2011 2012 2011 2012 1,400 $ 4,400 Assets $4,100 1,500 Debt $ 2,700 2,900 Equity 4,100 - 4,400 Total 4,400 $ $4,100 Total $