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A finance director of a multi-crore engineering company once stated We do not face any capital rationing problem. The capital market is big enough to
A finance director of a multi-crore engineering company once stated "We do not face any capital rationing problem. The capital market is big enough to supply us funds in various ways to finance any profitable project. We do, however, impose a budget ceiling on the capital expenditures of divisions for control purposes. But that does not imply a shortage of funds and therefore, non-acceptance of genuinely profitable projects." What is the finance director talking about?
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