Share
Explore BrainMass

Capital rationing and maximization of shareholder wealth

Does capital rationing impact maximization of shareholder wealth? Explain.

Solution Preview

Does capital rationing impact maximization of shareholder wealth? Explain

Source:

http://garnet.acns.fsu.edu/~ppeters/fin3403/readings/capbud/capbud1.htm

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 ...

Solution Summary

Discusses whether capital rationing impacts maximization of shareholder wealth.

$2.19