If a firm keeps an average stock of Lm100,000 and finances it with an overdraft facility at 7% interest, the cost of financing this stock is Lm7,000 per annum, in addition to other costs we will refer to later on.
Kama kampuni anaendelea hisa wastani wa Lm100,000 na Inafadhili kwa overdraft kituo katika 7% riba, gharama ya fedha ya hisa hii ni Lm7,000 kwa mwaka, kwa kuongeza gharama nyingine sisi rejea baadaye.