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2. More on the AFN (Additional Funds Needed) equation sheet: Based on the AFN equation, the firm's AFN for the current year is A positively
2. More on the AFN (Additional Funds Needed) equation sheet: Based on the AFN equation, the firm's AFN for the current year is A positively signed AFN value represents: A point at which the funds generated within the firm equal the demands for funds to finance the firm's future expected sales requirements. A surplus of internally generated funds that can be invested in physical or financial assets or paid out as additional dividends. A shortage of internally generated funds that must be raised outside the company to finance the company's forecasted future growth. Because of its excess funds, Bohemian Manufacturing Company is thinking about raising its dividend payout ratio to satisfy shareholders. Bohemian dividend payout ratio to before the AFN becomes positive?)
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