Chiptech, Inc., is an established computer chip firm with several profitable existing products as well as some promising new products in development. The company earned $2.30 a share last year, and just paid out a dividend of $0.92 per share. Investors believe the company plans to maintain its dividend payout ratio at 40%. ROE equals 21%. Everyone in the market expects this situation to persist indefinitely.

d. What will be the rate of return on Chiptech stock in the second year (between t = 1 and t = 2)? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.)