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When We Use the AFN Equation to Forecast the Additional

question 28

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When we use the AFN equation to forecast the additional funds needed (AFN),we are implicitly assuming that all financial ratios are constant.If financial ratios are not constant,regression techniques can be used to improve the financial forecast.


Definitions:

Endocrine Glands

Glands of the endocrine system that release hormones directly into the bloodstream to regulate various bodily functions.

Hormones

Chemical substances, released from endocrine glands, that travel through the bloodstream to targeted tissues; the tissues are later influenced by the hormones.

Gonads

Sex glands responsible for producing gametes (sperm in males and eggs in females) and sex hormones.

Secondary Sex Characteristics

Physical changes during puberty that are not directly related to reproduction but that indicate the differences between the sexes.

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