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1. Financial managers always should use the free trade credit, but they should use the costly trade credit only after analyzing the cost of this

1. Financial managers always should use the free trade credit, but they should use the costly trade credit only after analyzing the cost of this source of financing to make sure that it is less than the cost of funds that could be obtained from other sources. What do you understand from the above-mentioned statement? Briefly explain with necessary numerical data. (4 marks)

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