The difference between soft and hard rationings. Introduction: Soft rationing is a situation where business units can raise additional funds either through debt or equity. This rationing arises from external sources for reducing shortage of capital and other expenses. Hard rationing is a situation that takes place at the time when a firm cannot raise on the source financing for a particular project.

Question

Want to see the full answer?

Answer 1

Question

Chapter 11, Problem 8CRCT

Summary Introduction

To discuss: The difference between soft and hard rationings.

Introduction:

Soft rationing is a situation where business units can raise additional funds either through debt or equity. This rationing arises from external sources for reducing shortage of capital and other expenses.

Hard rationing is a situation that takes place at the time when a firm cannot raise on the source financing for a particular project.

Summary Introduction

To discuss: Regarding the implication of soft and hard rationings when a firm experiences it.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Is capital rationing always a bad thing? Explain

What is capital rationing? What types of firms might encounter capital rationing?

p14 More profitable firms have less debt, which supports the trade-off theory. True False

Answer 2

Question

Chapter 11, Problem 8CRCT

Summary Introduction

To discuss: The difference between soft and hard rationings.

Introduction:

Soft rationing is a situation where business units can raise additional funds either through debt or equity. This rationing arises from external sources for reducing shortage of capital and other expenses.

Hard rationing is a situation that takes place at the time when a firm cannot raise on the source financing for a particular project.

Summary Introduction

To discuss: Regarding the implication of soft and hard rationings when a firm experiences it.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 11, Problem 8CRCT

Summary Introduction

To discuss: The difference between soft and hard rationings.

Introduction:

Soft rationing is a situation where business units can raise additional funds either through debt or equity. This rationing arises from external sources for reducing shortage of capital and other expenses.

Hard rationing is a situation that takes place at the time when a firm cannot raise on the source financing for a particular project.

Summary Introduction

To discuss: Regarding the implication of soft and hard rationings when a firm experiences it.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 11, Problem 8CRCT

Summary Introduction

To discuss: The difference between soft and hard rationings.

Introduction:

Soft rationing is a situation where business units can raise additional funds either through debt or equity. This rationing arises from external sources for reducing shortage of capital and other expenses.

Hard rationing is a situation that takes place at the time when a firm cannot raise on the source financing for a particular project.

Summary Introduction

To discuss: Regarding the implication of soft and hard rationings when a firm experiences it.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 11, Problem 8CRCT

Summary Introduction

To discuss: The difference between soft and hard rationings.

Introduction:

Soft rationing is a situation where business units can raise additional funds either through debt or equity. This rationing arises from external sources for reducing shortage of capital and other expenses.

Hard rationing is a situation that takes place at the time when a firm cannot raise on the source financing for a particular project.

Summary Introduction

To discuss: Regarding the implication of soft and hard rationings when a firm experiences it.

Answer 6

Chapter 11, Problem 8CRCT

Summary Introduction

To discuss: The difference between soft and hard rationings.

Introduction:

Soft rationing is a situation where business units can raise additional funds either through debt or equity. This rationing arises from external sources for reducing shortage of capital and other expenses.

Hard rationing is a situation that takes place at the time when a firm cannot raise on the source financing for a particular project.

Answer 7

Chapter 11, Problem 8CRCT

Summary Introduction

To discuss: The difference between soft and hard rationings.

Introduction:

Soft rationing is a situation where business units can raise additional funds either through debt or equity. This rationing arises from external sources for reducing shortage of capital and other expenses.

Hard rationing is a situation that takes place at the time when a firm cannot raise on the source financing for a particular project.

Answer 8

Summary Introduction

To discuss: Regarding the implication of soft and hard rationings when a firm experiences it.

Answer 9

Summary Introduction

To discuss: Regarding the implication of soft and hard rationings when a firm experiences it.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 13

Ch. 11.1 - Prob. 11.1ACQ Ch. 11.1 - What are some potential sources of value in a new...Ch. 11.2 - Prob. 11.2ACQ Ch. 11.2 - What are the drawbacks to the various types of...Ch. 11.3 - How are fixed costs similar to sunk costs?Ch. 11.3 - What is net income at the accounting break-even...Ch. 11.3 - Why might a financial manager be interested in the...Ch. 11.4 - If a project breaks even on an accounting basis,...Ch. 11.4 - If a project breaks even on a cash basis, what is...Ch. 11.4 - Prob. 11.4CCQ

Solution Summary: The author explains the difference between soft and hard rationings, stating the implication of both.

To discuss: Regarding the implication of soft and hard rationings when a firm experiences it.

Want to see the full answer?

Chapter 11 Solutions