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The financial statements of Eagle Sport Supply are shown in the table below. For simplicity,...

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Accounting

The financial statements of Eagle Sport Supply are shown in the table below. For simplicity, Costs include interest. Assume that Eagles assets are proportional to its sales. Assume a growth rate of 35% in revenue, expenses, and assets in 2018. The tax rate will remain constant.

INCOME STATEMENT
Sales $3,550
Costs $1,550
Pretax income $2,000
Taxes (at 30.0%) $600
Net income $1,400

Balance Sheet Year End
2017 2016 2017 2016
Assets $5,600 $5,300 Debt $2,300 $2,200
Equity $3,300 $3,100
Total $5,600 $5,300 Total $5,600 $5,300

a. Assume that the dividend payout ratio is fixed at 50% and the equity-to-asset ratio is fixed. What is the internal growth rate for 2018? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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