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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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