Which of the following statements is NOT true about the AFN equation?

1. The higher the growth rate g, the larger the AFN will be- other things held constant.

2. The higher the capital intensity ratio, the larger AFN will be-other things held constant.

3.The higher the profit margin, the smaller AFN will be-other things held constant.

4.Te lower the payout ratio, the higher AFN will be-other things held constant.