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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. 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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