Q494
An increase in marginal cost of capital and capital rationing are two arising complications of
A.
maximum capital budget
B.
greater capital budget
C.
optimal capital budget
AnswerD.
minimum capital budget
Answer: Option C
Solution
Answer: Option C
Solution:
An increase in marginal cost of capital and capital rationing are two arising complications of optimal capital budget. The optimal capital budget is an amount of investment that allows shareholder value to be maximized.