Pratt Company had an average of $160,000 worth of a certain product in inventory from September 1

Question:

Pratt Company had an average of $160,000 worth of a certain product in inventory from September 1 to December 31. If Pratt’s cost of capital is 16%, what is the financial holding cost of this inventory?

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...