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.
Answer: D
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