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What is capital rationing? Should a firm practice capital rationing? Why?
Capital rationing is the practice of putting dollar limits on what will be invested in new capital budgeting projects. Private corporations, partnerships and Proprietorships are in a position to do whatever the owners wish. It can be disputed, but, that for a publicly traded corporation capital rationing may not be steady with maximizing the value of the firm. This is because various value adding projects may be rejected if they would cause the firm to go beyond its self imposed capital rationing limit.
I need to get a good understandin about what this means?
1. role financial intermediaries 2. nature and role of money markets
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4. In the front of each folder were some handwritten notes that Meenda had made on Monday before he left. Give focus on the said notes.
capital structure
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