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Jane's Wigs Inc. had the following balance sheet last year: Jane has just invented a non-slip wig for men which she expects will cause sales
Jane's Wigs Inc. had the following balance sheet last year: Jane has just invented a non-slip wig for men which she expects will cause sales to triple from $10,000 to $30,000, increasing net income to $1,000. She feels that she can handle the increase without adding any fixed assets. (1) Will Jane need any outside capital if she pays out 80% of net income as dividends dividends? (2) If so, how much?
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