Recommend methods for the firm to finance the AFN requirements for the next fiscal year and evaluate the impact of various financing methods on the ROE.

When looking for ways to finance a company’s AFN requirements, there are several options available. For instance, one method is to issue debt – such as bonds or loans – which enables businesses to borrow money from investors in order to raise capital. The owners do not have to surrender any ownership equity and the interest rates are relatively low.

A second option for firms is to use preferred stock, which allows them to raise funds without having more shares of common stock issued. Preferred shareholders are usually entitled to voting rights as well as dividends. However– they often lack the same liquidity that regular stocks offer.

Ultimately – understanding how various financing methods can impact ROE (return on equity) will help businesses determine the best course of action when seeking additional funding! By carefully weighing all pros and cons – decisions makers can ensure they are taking the most efficient route towards meeting their financial goals.