Does capital rationing impact maximization of shareholder wealth? Explain.© BrainMass Inc. brainmass.com June 3, 2020, 5:23 pm ad1c9bdddf
Does capital rationing impact maximization of shareholder wealth? Explain
Capital rationing limits the amount that can be spent on capital investments during a particular period of time -- that is, a limit on the capital budget. These constraints may arise from some policy of the board of directors, or may arise externally, say from creditor ...
Discusses whether capital rationing impacts maximization of shareholder wealth.