Eagle Sports Supply has the following financial statements. Assume that Eagle’s assets are proportional to its sales. INCOME STATEMENT, 2017 Sales $ 1,350 Costs 260 Interest 70 Taxes 210 Net income $ 810 BALANCE SHEET, YEAR-END 2016 2017 2016 2017 Assets $ 3,600 $ 3,900 Debt $ 900 $ 1,000 Equity 2,700 2,900 Total $ 3,600 $ 3,900 Total $ 3,600 $ 3,900
a. What is the internal growth rate of Eagle Sports if the dividend payout ratio is fixed at 50% and the equity-to-asset ratio is fixed at 2/3? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
b. What is the sustainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)