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Sagot :
A high cost of capital can put pressure on a company to carry small levels of inventory.
The value of a firm can also be influenced by its cost of capital. Investors are likely to perceive less value in owning a share of the stock of a company with a high cost of capital since such a corporation can anticipate fewer long-term profits.
Both the products that are on hand for sale and the raw materials required to make those products are considered inventory. On the balance sheet of an organization, it is categorized as a current asset. The three different categories of inventory are raw materials, finished commodities, and work-in-progress.
Learn more about inventory here:
https://brainly.com/question/25947903
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