Capital rationing
Placing one or more limits on the amount of new investment undertaken by a firm, either by using a higher cost of capital, or by setting a maximum on parts of, and/or the entirety of, the capital budget. ...
capital rationing
a situation in capital budgeting in which acceptable investments (capital investment opportunities whose projected rate of return exceeds the firm's risk-adjusted cost of capital) compete for a limited amount of funds available for ...
capital rationing - Related Articles
How to Set the Hurdle Rate for Capital Investments
Best Practice ...
HARD CAPITAL RATIONING - A capital budget that under no circumstances can be violated.
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capital rationing
a condition that exists when there is an
upper-dollar constraint on the amount of capital available
to commit to capital asset acquisition ...
Capital Rationing. Shortage of funds that forces a company to choose between projects.
Capital Structure Mix of different securities issued by a company.
Capital rationing - Selecting the mix of acceptable projects that provides the highest overall net present value (NPV) when a company has a limit on the budget for capital spending.
Hard capital rationing
A capital budget that under no circumstances can be violated.
Hard currency
A freely convertible currency that is not expected to depreciate in value in the foreseeable future.
Capital rationing that under no circumstances can be violated.
Hard currency
A freely convertible currency that is not expected to depreciate in value in the foreseeable future.
Capital rationing is a procedure resorted to when a firm is unable to undertake all the investment projects that yield returns in excess of financing costs because of a limited availability of funds.
Capital Rationing
The act of placing restrictions on the amount of new investments or projects undertaken by a company.
"Soft" Capital Rationing Capital rationing that under certain circumstances can be violated or even viewed as made up of targets rather than absolute constraints.
The major index in Hong Kong.
Hard capital rationing
A capital budget that under no circumstances can be violated.
Hard currency ...
"Soft" capital rationing Constraints on spending that under certain circumstances can be violated or even viewed as constituting targets rather than absolute limits.
Valuation Opportunity Cost The potential increase in firm value associated with investments that are for gone due to capital rationing.
Zero-one integer programming An analytical method that can be used to determine the solution to a capital rationing problem. Zero prepayment assumption The assumption of payment of scheduled principal and interest with no payments.
Present Value Index (PVI)
The ratio of the NPV of a project to the initial outlay required for it. The index is an efficiency measure for investment decisions under capital rationing.
 See also: Rationing, Expense, Banks, Cost of capital, Transaction costs
  
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