Question $17(1$ point$)$

Which of the following assumptions are necessary for AFN equation to work?

Common stock and long$-$term debt are tied directly to sales.

Last year's total assets were not optimal for last year's sales.

None of the firm's ratios will change.

Fixed assets, but not current assets, are tied directly to sales.

The ratios $A\frac{O}{S}$ and $L\frac{O}{S},$ the profit margin, and payout ratio are stable.