In a Minimization Problem, a Positive Improvement Index in a Cell

question 40

Multiple Choice

In a minimization problem, a positive improvement index in a cell indicates that:

• A) the solution is optimal.
• B) the total cost will increase if units are reallocated to that cell.
• C) there is degeneracy.
• D) the total cost will decrease if units are reallocated to that cell.
• E) the problem has no feasible solution.

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Definitions:

Ex-Dividend Date

The date when the right to the dividend leaves the stock. This date was established by stockbrokers to avoid confusion and is two business days prior to the holder-of-record date. If the stock sale is made prior to the ex-dividend date, the dividend is paid to the buyer. If the stock is bought on or after the ex-dividend date, the dividend is paid to the seller.

Dividend Irrelevance Theory

A theory proposed by Franco Modigliani and Merton Miller that suggests that a company's dividend policy has no effect on its market value or investors' required yield.

Residual Distribution Policy

A policy where dividends are based on the earnings left over after all project and operational investments have been made.

Stock Price

The cost of purchasing a share of a company's stock, which can fluctuate based on market conditions, company performance, and investor sentiment.