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    Capital rationing

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    Capital rationing:
    a. is a way of preserving the assets of the firm over the long term.
    b. is a less than optimal way to arrive at capital budgeting decisions.
    c. assures stockholder wealth maximization.
    d. assures maximum potential profitability.

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    Solution Preview

    b. is a less than optimal way to arrive at capital budgeting decisions.

    In capital rationing all ...

    Solution Summary

    The solution explains the correct option fom the given alternatives relating to capital rationing.

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