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The financial statements of Eagle Sport Supply are shown in the table below. For simplicity, Costs include interest. Assume that Eagle's assets are proportional to
The financial statements of Eagle Sport Supply are shown in the table below. For simplicity, "Costs" include interest. Assume that
Eagle's assets are proportional to its sales. Assume a growth rate of in revenue, expenses, and assets in The tax rate will
remain constant.
a Assume that the dividend payout ratio is fixed at and the equitytoasset ratio is fixed at twothirds. What is the internal
growth rate for
b What is the sustainable growth rate for
Note: For all requirements, do not round intermediate calculations. Enter your answers as a percent rounded to decimal places.
a Internal growth rate
b Sustainable growth rate
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