W3 Assignment Principles of Finance I Grantham University

(12-3) The following equation (AFN) is sometimes used to forecast financial requirement.

What key assumption do we make when using this equation?
Under what conditions might this assumption not hold true?

(12-5)What is meant by the term "self-supporting growth rate?"

How is the rate related to the AFN equation, and how can that equation be used to calculate the self-supporting growth rate?

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