Question 1
Over the last thirty years, the trend (in the U.S.) has been that a bigger proportion of firms pay dividends every year.
◦ true
◦ false
Question 2
Boren Shaft Inc. is a copper mining company with operations in Indonesia, Mongolia and Chile. Boren Shaft uses the residual dividend model to set its dividends. Which of the following best describes the pattern of Boren's dividends over time?
◦ Dividends increase slowly and stably over time
◦ Dividends fluctuate with copper prices over time
◦ Dividends fluctuate with copper prices and new discoveries of copper
◦ Dividends are fixed so that no negative signal is sent
copper
copper
Volcano in Indonesia
The Atacama Desert in Chile
Strip Mining
Operations Research