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1. A firm has developed a forecasting model to estimate its AFN for the upcoming year. All else being equal, which of the following factors

1. A firm has developed a forecasting model to estimate its AFN for the upcoming year. All else being equal, which of the following factors is most likely to lead to a decrease of the additional funds needed (AFN)?

A sharp increase in its net profit margin.

A sharp increase in its forecasted sales.

The company increases its dividend payout ratio.

The company discovers that it needs more capacity in its fixed assets

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