Question: im so lost dont know the formulas or what to plug where. Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are
Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales. a. Find Eagle's required external funds if it maintains a dividend payout ratio of 50% and plans a growth rate of 20% in 2020 . (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. If Eagle chooses not to issue new shares of stock, what variable must be the balancing item? c. What will be the value of this balancing item? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. Now suppose that the firm plans instead to increase long-term debt only to $1,700 and does not wish to issue any new shares of stock. What is now the balancing item? e. What will be the value of this new balancing item? (Do not round intermediate calculations. Round your answer to the nearest whole number.)
Step by Step Solution
There are 3 Steps involved in it
To assist with this problem I need the financial statements of Eagle Sports Supply that yo... View full answer
Get step-by-step solutions from verified subject matter experts
