In unprofitable times, corporations sometimes suspend dividend payments. Suppose that after a divid
Question: In unprofitable times, corporations sometimes suspend dividend payments. Suppose that after a dividend has been paid, the next one will be paid with probability 0.9, while after a dividend is suspended the next one will be suspended with probability 0.6. In the long run, what is the fraction of dividends that will be paid?
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Solution Format: Word Document
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