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  3. eagle sports supply has the following financial st

Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to...

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Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales. INCOME STATEMENT, 2019 Sales $1,750 Costs 340 Interest 80 Taxes 290 Net income $1,040 Assets BALANCE SHEET, YEAR-END 2018 2019 $ 4,400 $ 4,700 Debt Equity $ 4,400 $ 4,700 Total 2018 $ 900 3,500 $ 4,400 2019 $ 1,000 3,700 $ 4,700 Total a. Find Eagle's required external funds if it maintains a dividend payout ratio of 70% and plans a growth rate of 15% 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 $1,100 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.)

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