The financial statements of eagle sport supply are shown in


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 15% in revenue, expenses, and assets in 2018. The tax rate will remain constant.. Income Statement Sales $ 950 Costs 250 Pretax income $ 700 Taxes (at 28.6%) 200 Net income $ 500 Balance Sheet, Year-End 2017 2016 2017 2016 Assets $ 3,000 $ 2,700 Debt $ 1,000 $ 900 Equity 2,000 1,800 Total $ 3,000 $ 2,700 Total $ 3,000 $ 2,700 a. Assume that the dividend payout ratio is fixed at 60% and the equity-to-asset ratio is fixed at two-thirds. What is the internal growth rate for 2018? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Internal growth rate % b. What is the sustainable growth rate for 2018? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Sustainable growth rate % References

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Financial Management: The financial statements of eagle sport supply are shown in
Reference No:- TGS02813740

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