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a) Explain the justifications why a company may invest in debtors b) Advise management on the impact of costs associated with trade credit on business

a) Explain the justifications why a company may invest in debtors b) Advise management on the impact of costs associated with trade credit on business operations c) Advise management with reasons whether there is any benefit to be realized by the business if it paid dividends d) Given the situation above, recommend with justification whether it is appropriate and acceptable to pay dividends as per shareholders claim (20 marks)

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