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:

Technological Improvement

Advances in technology that enhance productivity, efficiency, or quality in the production of goods or services.

Cost of an Input

The cost of an input refers to the amount of money expended on resources needed to produce a good or service.

Number of Buyers

A factor that affects market demand, representing how many consumers are interested in purchasing a particular good or service.

Change in Supply

The shift in the quantity of a good that suppliers are willing and able to sell, influenced by factors like costs of production, technology, or expectations of future prices.