Objective of Capital Rationing Assignment Help

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What is capital rationing?

It is the process of putting restrictions on amount of newly investments or any projects undertaken by the company or any business. This is thus attunedby imposing higher cost of capital for investment or by setting a limit on specific portions of a budget.

Objective:

The primarypurpose of capital rationing is to act as a boundary on appealing new investments and projects by lashing higher cost of capital for investments done in each company.

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