What is a fair price for kenny to buy the stock today

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Kenny plans to buy a Chef Inc. stock today. His analyst informs him that Chef Inc. plans to pay $2.00 dividends for the next 2 years and also, Chef Inc. plans to buyback the stock at a fixed price of?25$, 2 years from now. The analyst also tell Kenny that the CAPM required rate of return for Chef?Inc. stock is 10%. What is a fair price for Kenny to buy the stock today?

Reference no: EM131568458

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