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?
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?
Chapter12: Sequences, Series And Binomial Theorem
Section12.3: Geometric Sequences And Series
Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...
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Transcribed Image Text: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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