What could happen to "unused" dollars after a firm has chosen capital projects but still has remaining unallocated funds?
A)The remaining funds may be invested at the "going rate" of the company.
B)The remaining funds,if internally generated,may be paid back to shareholders as a dividend.
C)If the remaining funds are part of borrowing,then the firm may choose to borrow less money.
D)All of the choices above are potential uses of unallocated funds.

Question

Quizplus · Accepted Answer

All of the choices provided are potential uses of unallocated funds depending on the specific circumstances of the firm. If the remaining funds are internally generated, the firm may choose to return the funds to shareholders in the form of a dividend. Alternatively, the firm may choose to invest the funds at the going rate of the company. If the remaining funds are part of borrowing, the firm may opt to borrow less money. Ultimately, the decision on how to allocate the remaining funds will depend on the firm's strategic priorities and financial goals.

What Could Happen to "Unused" Dollars After a Firm Has