We have the financial statements for eagle sports supply

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Reference no: EM131455878

Asset turnover = 1.40 ? Profit margin = 5% ? Payout ratio = 25% ? Equity/Assets = 0.60

We have the financial statements for Eagle Sports Supply. Now suppose: Eagle’s assets are proportional to its sales.

A- Question:

1-If it maintains a dividend payout ratio of 70% and plans a growth rate of 15% in 2013, what is the required external funds?

2-If Eagles does not issue new shares of stock, what variable must be the balancing item? What will its value be?

Reference no: EM131455878

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