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Capital rationing

The financial definition for Capital rationing:

Placing 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 the entire capital budget or parts of it.




Similar Matches

Hard capital rationing

Hard capital rationing
A capital budget that under no circumstances can be violated.


"Soft" capital rationing

"Soft" capital rationing
Constraints on spending that under certain circumstances can be violated or even viewed as constituting targets rather than absolute limits.




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