Problem 18-20 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 $1.70 a share last year, and just paid out a dividend of $0.68 per share. Investors believe the company plans to maintain its dividend payout ratio at 40%. ROE equals 27%. 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 18%, and the company has just gone ex-dividend (i.e., the next dividend will be paid a year from now, at t = 1). (Do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is complete and correct. Market price of Chiptech stock $ 43.90 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.) X Answer is complete but not entirely correct. Rate of return 27.00 X %