What will be the rate of return on Chiptech stock in the coming year (i.e., between t = 0 and t = 1)? (Hint for parts c through e: Pay attention to when the market catches on to the new situation. A table of dividends and market prices over time might help.)

d. What will be the rate of return on Chiptech stock in the second year (between t = 1 and t = 2)?

e. What will be the rate of return on Chiptech stock in the third year (between t = 2 and t = 3)? P-69