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The term “additional funds needed (AFN)” is generally defined as follows: (Which one)
*Funds that a firm must raise externally from non-spontaneous sources, i.e., by borrowing or by selling new stock to support operations.
*The amount of assets required per dollar of sales.
*The amount of internally generated cash in a given year minus the amount of cash needed to acquire the new assets needed to support growth.
* A forecasting approach in which the forecasted percentage of sales for each balance sheet account is held constant.
*Funds that are obtained automatically from routine business transactions.
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