Question: Please answer Question 1& 2 please thanks What are the key factors on which external financing depends, as indicated in the AFN equation? Assume that

Please answer Question 1& 2 please thanks

What are the key factors on which external financing depends, as indicated in the AFN equation? Assume that an average firm in the office supply business has a 6% profit margin, a 40% debt/assets ratio, a total assets turnover of 2 times and a dividend payout ratio of 40%. Is it true that if such a firm is to have any sales growth (g > 0), it will be forced to borrow or to sell common stock (that is, it will need some nonspontaneous external capital even if g is very small)? Explain. 17-1 17-2

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