What is capital rationing? In theory, should capital rationing exist? Why does it frequently occur in practice?

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What is capital rationing? In theory, should capital rationing exist? Why does it frequently occur in practice?

Capital Rationing
Capital rationing is the act of placing restrictions on the amount of new investments or projects undertaken by a company. Capital rationing is the decision process used to select capital projects when there is a limited amount of funding available....
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Principles Of Managerial Finance

ISBN: 978-0136119463

13th Edition

Authors: Lawrence J. Gitman, Chad J. Zutter

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