2 problems

Let $w(x,i)$ be the value function when the surplus is $x$ and the Markov regime is $i\in\{1,2\}$. Let $d_1$ and $b_2$ satisfy $d_1<b_2$, and consider surplus levels…

Let $mu_1$ and $mu_2$ denote the drift parameters in regimes 1 and 2, respectively. The company starts with any surplus and may choose a dividend strategy, including liquidation by…