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    Financial Management Theory and Practice Study Set 4
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    Exam 12: Corporate Valuation and Financial Planning
  5. Question
    Firms Pay a Low Interest Rate on Spontaneous Liabilities So
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Firms Pay a Low Interest Rate on Spontaneous Liabilities So

Question 20

Question 20

True/False

Firms pay a low interest rate on spontaneous liabilities so these funds are its cheapest source of capital.Consequently, the firm should make arrangements with its suppliers to use as much of this credit as possible.

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