please answer all rest parts
12 10 po Chiptech, Inc. is an established computer chip fim with several profitable costing products as well as some promising new products in development. The company earned $2.80 a share last year and just paid out a dividend of $1.40 per share Investors believe the company plans to maintain its dividend payout ratio et 50% ROE equals 24%. Everyone in the market expects this situation to persist indefinitely a. What is the market price of Chiptech stock? The required return for the computer chip industry is 20%, and the company has just gone ex-dividend lie the next dividend will be paid a year from now.att1 Do not round Intermediate calculations. Round your answers to 2 decimal places Answer is complete and correct. Market price of Chiptech 19.80 1. Suppose you discover that Chiplechy's competitor has developed a new clip that will eliminate Cplech's current technological advantage in this market. This new product, which will be ready to come to the market in two years, wir force Chiptech to reduce the prices of its chips to remain competitive. This will decrease ROE to 20%, and, because of falling demand for its product, Chiptech will decrease the plowback ratio to 04. The plowback ratio will be decreased at the end of the second year, all-2The annual year-end dividend for the second year paid at t=2) will be 60% of that year's eamings. What is your estimate of Chiptechis intrinsic value per share? (Hint Carefully prepare a table of Chiptech's earings and dividends for each of the next three years. Pay close attention to the change in the payout ratio in t-2(Round your answers to 2 decimal places) Answer is complete but not entirely correct. AP TA 12 Altime 2 Alime 5 5 18.99 21.65 10 C. No one else in the market perceives the threat to Chiptech's market. In fact, you are confident that no one else will become aware o the change in Chiptech's competitive status until the competitor firm publicly announces its discovery near the end of year 2. What will be the rate of return on Chiptech stock in the coming year le, between 0 and t = 1/2 (Hint for parts through Pay attention to when the market catches on to the new situation. A table of dividends and market prices over time might help)(Do not round Intermediate calculations. Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places) Answer is not complete. Rate of retum d. What will be the rate of return on Chiptech stock in the second year between 1 and 2)? (Do not round Intermediate calculations. Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.) Rase of reum 12 10 po Chiptech, Inc. is an established computer chip fim with several profitable costing products as well as some promising new products in development. The company earned $2.80 a share last year and just paid out a dividend of $1.40 per share Investors believe the company plans to maintain its dividend payout ratio et 50% ROE equals 24%. Everyone in the market expects this situation to persist indefinitely a. What is the market price of Chiptech stock? The required return for the computer chip industry is 20%, and the company has just gone ex-dividend lie the next dividend will be paid a year from now.att1 Do not round Intermediate calculations. Round your answers to 2 decimal places Answer is complete and correct. Market price of Chiptech 19.80 1. Suppose you discover that Chiplechy's competitor has developed a new clip that will eliminate Cplech's current technological advantage in this market. This new product, which will be ready to come to the market in two years, wir force Chiptech to reduce the prices of its chips to remain competitive. This will decrease ROE to 20%, and, because of falling demand for its product, Chiptech will decrease the plowback ratio to 04. The plowback ratio will be decreased at the end of the second year, all-2The annual year-end dividend for the second year paid at t=2) will be 60% of that year's eamings. What is your estimate of Chiptechis intrinsic value per share? (Hint Carefully prepare a table of Chiptech's earings and dividends for each of the next three years. Pay close attention to the change in the payout ratio in t-2(Round your answers to 2 decimal places) Answer is complete but not entirely correct. AP TA 12 Altime 2 Alime 5 5 18.99 21.65 10 C. No one else in the market perceives the threat to Chiptech's market. In fact, you are confident that no one else will become aware o the change in Chiptech's competitive status until the competitor firm publicly announces its discovery near the end of year 2. What will be the rate of return on Chiptech stock in the coming year le, between 0 and t = 1/2 (Hint for parts through Pay attention to when the market catches on to the new situation. A table of dividends and market prices over time might help)(Do not round Intermediate calculations. Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places) Answer is not complete. Rate of retum d. What will be the rate of return on Chiptech stock in the second year between 1 and 2)? (Do not round Intermediate calculations. Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.) Rase of reum
