The financial statements of eagle sport supply

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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. 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. Find Eagle’s required external funds if it maintains a dividend payout ratio of 60% and plans a growth rate of 15% in revenue, expenses, and assets in 2018. Assume the tax rate remains constant. (Do not round intermediate calculations. Round your answer to 1 decimal place.) External funds needed $ b. If Eagle chooses not to issue new shares of stock, what is the value of debt in 2018? (Do not round intermediate calculations. Round your answer to 1 decimal place.) Value of debt $ c. Suppose that the firm plans instead to increase long-term debt only to $1,100 and does not wish to issue any new shares of stock. What must be the 2018 dividend payment now? (Do not round intermediate calculations. Round your answer to 1 decimal place.) Dividends $

Reference no: EM132019289

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The financial statements of eagle sport supply : The financial statements of Eagle Sport Supply are shown in the table below. For simplicity, “Costs” include interest.
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