Author Question: Capital rationing A) exists when a company sets an arbitrary limit on the amount of investment it ... (Read 108 times)

CQXA · **on:** Jul 1, 2018

Capital rationing

A) exists when a company sets an arbitrary limit on the amount of investment it is willing to undertake, so that not all projects with an NPV higher than the cost of capital will be accepted.
B) generally does not permit a company to achieve maximum value.
C) seems to occur quite frequently among corporations.
D) All of the above

Question 2

The larger the U.S. imposed per unit import tariff on a good imported and that is also produced in the U.S.

A) the smaller the U.S consumer surplus.
B) the larger the U.S. producer surplus.
C) government revenue may be larger or smaller.
D) All of the above.