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Dividends of the company increases 7 0 % when economy expands and increases 2 0 % when economy contracts. There is 4 5 % probability

Dividends of the company increases

70 %

when economy expands and increases

20 %

when economy contracts. There is

45 %

probability that economy will contract next year. What is the probability that economy will increase dividends because of an economy increase?

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