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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.
a Find Eagle's required external funds if it maintains a dividend payout ratio of and plans a growth rate of in revenue,
expenses, and assets in Assume the tax rate remains constant. Do not round intermediate calculations. Round your answer
to the nearest whole dollar amount.
External funds needed
b If Eagle chooses not to issue new shares of stock, what is the value of debt in Do not round intermediate calculations.
Round your answer to the nearest whole dollar amount.
Value of debt
c Suppose that the firm plans instead to increase longterm debt only to $ and does not wish to issue any new shares of stock.
What must be the dividend payment now? Do not round intermediate calculations. Round your answer to the nearest whole
dollar amount.
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