Capital rationing and maximization of shareholder wealth
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Does capital rationing impact maximization of shareholder wealth? Explain.
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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 ...
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Discusses whether capital rationing impacts maximization of shareholder wealth.
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