The financial statements of eagle sport supply are shown in


The financial statements of Eagle Sport Supply are shown in the below table. For simplicity, “Costs” include interest. Assume that Eagle’s assets are proportional to its sales. Assume a growth rate of 35%. Income Statement Sales $ 4,750 Costs 2,150 Pretax income 2,600 Taxes (at 40%) 1,040 Net income $ 1,560 Balance Sheet, Year-end 2014 2013 2014 2013 Assets $ 6,800 $ 6,500 Debt $ 2,900 $ 2,800 Equity 3,900 3,700 Total $ 6,800 $ 6,500 Total $ 6,800 $ 6,500 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? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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Financial Management: The financial statements of eagle sport supply are shown in
Reference No:- TGS01367169

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