Explain how a firm that expects to need funds during the coming year might make sure that the needed funds will be available.

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Explain how a firm that expects to need funds during the coming year might make sure that the needed funds will be available.

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Explain how a firm that expects to need funds during the coming year might make sure that the needed funds will be available.

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The company can raise funds in the next year using the following ways:-

By paying lesser dividends to shareholders and increasing the balance of reserves to meet fund requirements.
By raising funds through the external source of finance such as common stocks, bank loans, or loans from financial institutions.
By liquidating the investments.

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