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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

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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 $1.50 a share last year, and just paid out a dividend of $0.60 per share. Investors believe the company plans to maintain its dividend payout ratio at 40%. ROE equals 25%. 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.) Rate of return % e. What will be the rate of return on Chiptech stock in the third year (between t = 2 and t = 3)? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return % 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 $1.50 a share last year, and just paid out a dividend of $0.60 per share. Investors believe the company plans to maintain its dividend payout ratio at 40%. ROE equals 25%. 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.) Rate of return % e. What will be the rate of return on Chiptech stock in the third year (between t = 2 and t = 3)? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return %

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