Subject:- finance The financial statements of Eagle Sport Supply are shown in the table below. For simplicity, "Costs" include interest. Assume thatEagle's assets are proportional to its sales. Assume a growth rate of 15% in revenue, expenses, and assets in 2023. The tax rate willremain constant.Income StatementSalesCostsPretax incomeTaxes (at 28.6%)Net incomeNet assetsTotal$ 950250$ 700200$ 500Balance Sheet,20212022$3,000 $2,700Year-EndDebtEquity$ 3,000 $2,700 Total $3,000a. Internal growth rateb. Sustainable growth rate2022$ 1,0002,000a. Assume that the dividend payout ratio is fixed at 50% and the equity-to-asset ratio is fixed at two-thirds. What is the internalgrowth rate for 2023?b. What is the sustainable growth rate for 2023?Note: For all requirements, do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.%%2021$ 9001,800$2,700

The growth rate represents the rate at which a variable changes over a period of time.

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 2023. The tax rate will remain constant. Income Statement Sales Costs Pretax income Taxes (at 28.60) Net income Net assets Total $ 950 250 $ 700 200 $ 500 Year-End Debt Equity $3,000 $2,700 Total $3,000 $2,700 Balance Sheet, 2021 2022 $3,000 $2,700 a. Internal growth rate b. Sustainable growth rate 2022 $ 1,000 2,000 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 for 2023? b. What is the sustainable growth rate for 2023? Note: For all requirements, do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. % % 2021 $ 900 1,800

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 2023. The tax rate will remain constant. Income Statement Sales Costs Pretax income Taxes (at 28.60) Net income Net assets Total $ 950 250 $ 700 200 $ 500 Year-End Debt Equity $3,000 $2,700 Total $3,000 $2,700 Balance Sheet, 2021 2022 $3,000 $2,700 a. Internal growth rate b. Sustainable growth rate 2022 $ 1,000 2,000 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 for 2023? b. What is the sustainable growth rate for 2023? Note: For all requirements, do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. % % 2021 $ 900 1,800

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 12P

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