Question
How would you define the process of allocating a
limited capital budget between different projects in a way that maximizes shareholder wealth?Solution
When a company has limited budget or capital available, it would have to choose between various independent projects. The company will choose such projects that will contribute maximum to shareholder value. For example, if there are 2 independent projects with NPV of Rs.3000 and Rs.5000 respectively, the company will allocate more capital to the project with NPV of 5000.
Which of the following is a foundational principle of Arya Samaj?
Which Indian archers will compete for the gold medal at the Archery World Cup 2023 Stage 1 in Antalya, Turkey?
- Who laid the foundation stone for the 'Divine Light House' of Prajapita Brahma Kumaris Ishwariya Vishwa Vidyalaya in Odisha?
What is the primary goal of the National Agro-RE Summit 2025?
Which bonds did the Reserve Bank of India add to the Fully Accessible Route (FAR) for non-resident investment?
The Union Cabinet approved the Promotion and Regulation of Online Gaming Bill, 2025, mainly to ban which category of games?
How many Centre for Financial Literacy (CFL) units have been established by RBI across India?
What is the financial outlay of the National Scheme for ITI Upgradation approved by the Cabinet?
In which state is the Rihand Dam located?
What was the allocation amount sanctioned under the SASCI framework in FY 2023–24 for PM Ekta Malls?
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