Sea Coast Plumbing Company (SCPC) is a national company that provides residential plumbing services.

SCPC is considering making a substantial investment in Rakeland Distributors, Inc. (RDI). RDI sells plumbing supplies throughout the United States.

Required

a. Identify two financial benefits that SCPC could receive from an investment in RDI.

b. What types of information would be helpful in evaluating SCPC's investment opportunity?

c. Speculate as to how owning RDI stock could benefit SCPC's capacity to conduct its operations.