Shadow Prices Are Associated with Nonbinding Constraints,and Show the Change

question 63

True/False

Shadow prices are associated with nonbinding constraints,and show the change in the optimal objective function value when the right side of the constraint equation changes by one unit.

---

Definitions:

Annual Dividends

The total amount of dividend payments a company pays out to its shareholders in one year.

Desired Rate of Return

The minimum return an investor expects to achieve by investing in a particular asset, taking into account the asset's risk level.

Share

A unit of ownership in a company that entitles the holder to a proportion of the corporation's assets and profits.

Dividend Growth

Dividend growth is the rate at which a company's dividend payments to shareholders increase over time, indicative of the company's financial health and profit distribution policy.