Capital rationing is applied in a situation where

Question

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The dividend is converted into capital for completion of a new project

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It is difficult to bring in required amount of capital

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Financial institutions are doubtful or not sure of the validity of the project

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A large number of investment proposals compete for limited funds

1.	Capital rationing is applied in a situation where
A.	It is difficult to bring in required amount of capital
B.	Financial institutions are doubtful or not sure of the validity of the project
C.	A large number of investment proposals compete for limited funds
D.	The dividend is converted into capital for completion of a new project
Answer» D. The dividend is converted into capital for completion of a new project

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