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

The financial statements of Eagle Sport Supply are shown in the table below. For simplicity, Costs include interest. Assume that Eagles assets are proportional to its sales. Assume a growth rate of 35% in revenue, expenses, and assets in 2018. 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

Balance Sheet Year End
2017 2016 2017 2016
Assets $5,600 $5,300 Debt $2,300 $2,200
Equity $3,300 $3,100
Total $5,600 $5,300 Total $5,600 $5,300

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 2018? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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