a. What is the internal growth rate of Eagle Sports (see problem 32) if the dividend payout

Question:

a. What is the internal growth rate of Eagle Sports (see problem 32) if the dividend payout ratio is fixed at 60 percent and the equity-to-asset ratio is fixed at 2/3?

b. What is the sustainable growth rate?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Internal Growth Rate
"An internal growth rate (IGR) is the highest level of growth achievable for a business without obtaining outside financing, and a firm's maximum internal growth rate is the level of business operations that can continue to fund and grow the...