Eagle Sports Supply has the following financial statements. Assume that Eagles assets are proportional to its sales.

INCOME STATEMENT, 2012
Sales	$	850
Costs		160
Interest		40
Taxes		110
Net income	$	540

BALANCE SHEET, YEAR-END
	2011		2012			2011		2012
Assets	$	2,600	$	2,900	Debt	$	800	$	900
					Equity		1,800		2,000
Total	$	2,600	$	2,900	Total	$	2,600	$	2,900

a.	Find Eagles required external funds if it maintains a dividend payout ratio of 70% and plans a growth rate of 15% in 2013. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

External fund

$

b-1	If Eagle chooses not to issue new shares of stock, what variable must be the balancing item?
	Debt Interest Dividends

b-2	What will its value be? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Value

$

c.	Now suppose that the firm plans instead to increase long-term debt only to $1,000 and does not wish to issue any new shares of stock. What will be the value of dividend payment now?

Value

$