firm's AFN must come from external sources Typical sources include short-term bank loans, long-term bonds, preferred stock, and common stock.

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Quizplus · Accepted Answer

AFN (additional funds needed) is the amount of funding a firm needs to acquire from external sources to support its projected growth. These external sources can include short-term bank loans, long-term bonds, preferred stock, and common stock. Therefore, it is true that a firm's AFN must come from external sources.

Firm's AFN Must Come from External Sources Typical Sources Include