Related to Sensitivity Analysis in Linear Programming,when the Profit Increases

question 3

Multiple Choice

Related to sensitivity analysis in linear programming,when the profit increases with a unit increase in a resource,this change in profit is referred to as the:

• A) add-in price
• B) sensitivity price
• C) shadow price
• D) additional profit

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Definitions:

Convertible Bonds

Bonds that can be converted into a predetermined number of the issuing company's shares, usually at the discretion of the bondholder.

Conversion Value

The financial worth of a convertible security if it is converted into a different form, usually shares of the company's common stock.

Straight Bond Value

The value of a bond that pays fixed interest payments and does not have any additional features such as convertibility or callable options.

Conversion Value

The worth of a convertible security if it is converted into a different asset, usually common stock, at the current market price.