If a Firm Is Experiencing No Capital Rationing,it Should Accept

question 75

True/False

If a firm is experiencing no capital rationing,it should accept all investment proposals whose accounting rate of return is equal to or greater than the weighted average cost of capital.

---

Definitions:

Describe

The act of giving a detailed account or picture of something in words, including all relevant characteristics, qualities, or events.

Explain

To make something clear or easy to understand by describing or giving information about it.

Behavioral School

A perspective in psychology focusing on observable behaviors and the ways in which learning influences behavior, discounting internal mental processes.

Watson

John B. Watson, an American psychologist who established the psychological school of behaviorism, emphasizing the importance of observable behaviors over internal phenomena like thoughts and emotions.