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(Identifying spontaneous, temporary, and permanent sources of financing) classify each of the following sources of new financing as spontaneous, temporary, or permanent (explain):

1. A manufacturing firm enters into a loan agreement with its bank that calls for annual principal and interest payments spread over the next four years.

2. A retail firm orders new items of inventory that are charged to the firm’s trade credit.

3. A Crown firm issues common stock to the public and uses the proceeds to upgrade its tractor fleet.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92781498

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