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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

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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 its sales. Assume a growth rate of 35% in revenue, expenses, and assets in 2020. The tax rate will remain constant. Income Statement Sales $3,550 Costs 1,550 Pretax income $2,000 Taxes (at 30.0%) 600 Net income $1,400 2019 Net assets Balance Sheet, Year-End 2018 $ 5,600 $ 5,300 Debt Equity $ 5,600 $5,300 Total 2019 $ 2,300 3,300 $ 5,600 2018 $ 2,200 3,100 $5,300 Total a. Assume that the dividend payout ratio is fixed at 50% and the equity-to-asset ratio is fixed. What is the internal growth rate for 2020? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Internal growth rate 1% b. What is the sustainable growth rate for 2020? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Sustainable growth rate % 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 35% in revenue, expenses, and assets in 2020. The tax rate will remain constant. Income Statement Sales $3,550 Costs 1,550 Pretax income $2,000 Taxes (at 30.0%) 600 Net income $1,400 2019 Net assets Balance Sheet, Year-End 2018 $ 5,600 $ 5,300 Debt Equity $ 5,600 $5,300 Total 2019 $ 2,300 3,300 $ 5,600 2018 $ 2,200 3,100 $5,300 Total a. Assume that the dividend payout ratio is fixed at 50% and the equity-to-asset ratio is fixed. What is the internal growth rate for 2020? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Internal growth rate 1% b. What is the sustainable growth rate for 2020? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Sustainable growth rate %

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