In unprofitable times corporations sometimes suspend dividend payments. Suppose that after a dividend has been paid the

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?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: