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The financial statements of Eagle Sport Supply are shown in the below table. For simplicity, Cost include interest. Assume that Eagle's assets are proportional to

The financial statements of Eagle Sport Supply are shown in the below table. For simplicity, "Cost" include interest. Assume that Eagle's assets are proportional to its sales. Assume a growth rate of 30%.

Income Statement

Sales

$2,750

Costs

1,150

Pretax income

1,600

Taxes ( at 30% )

480

Net income

$1,120

Balance Sheet, year-End

2014

2013

2014

2013

Assets

$4,,800

$4,500

Debt

$1,900

$1,800

Equity

2,900

2,700

Total

$4,800

$4,500

Total

$4,800

$4,500

a. Assume that the dividend payout ratio is fixed at 50% and the equity-to-asset ratio is fixed at two-thirds. What is the internal growth rate of Eagle Sport?

Internal growth rate

b. What is the sustainable growth rate? (round answer 2 decimal places)

Sustainable growth rate

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