The term "additional funds needed (AFN)" is generally defined as follows: a A forecasting approach in which the forecasted percentage of sales for each balance sheet account is held constant. b. The amount of assets required per dollar of sales. c. The amount of internally generated cash in a given year minus the amount of cash needed to acquire the new assets needed to support growth. d. Funds that a firm must raise externally from non-spontaneous sources, ie., by borrowing or by selling new stock to support operations. e. Funds that are obtained automatically from routine business transactions.
The term "additional funds needed (AFN)" is generally defined as follows: a A forecasting approach in which the forecasted percentage of sales for each balance sheet account is held constant. b. The amount of assets required per dollar of sales. c. The amount of internally generated cash in a given year minus the amount of cash needed to acquire the new assets needed to support growth. d. Funds that a firm must raise externally from non-spontaneous sources, ie., by borrowing or by selling new stock to support operations. e. Funds that are obtained automatically from routine business transactions.
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter12: Corporate Valuation And Financial Planning
Section: Chapter Questions
Problem 6Q: Suppose a firm makes the following policy changes listed. If a change means that external,...
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