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define capital rationing!

Question Posted / rohit.g599

Answers were Sorted based on User's Feedback



define capital rationing! ..

Answer / nilesh yeole

when firm has limited resources to finance multiple projects
, they are evaluated based projects, Profitability Index
which is NPV (+) Cost upon Cost and based on it projects are
selected

Is This Answer Correct ?    1 Yes 0 No

define capital rationing! ..

Answer / ammu

The act of placing restrictions on the amount of new
investments or projects undertaken by a company. This is
accomplished by imposing a higher cost of capital for
investment consideration or by setting a ceiling on the
specific sections of the budget.

Is This Answer Correct ?    1 Yes 0 No

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