Among the Two Models Constant Dividend Growth Model (CDGM) and Capital

question 1

Essay

Among the two models Constant Dividend Growth Model (CDGM) and Capital Asset Pricing Model (CAPM), which is a better method for computation of the cost of equity?

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Definitions:

Acceptance

In contract law, the act of agreeing to the terms of an offer, thereby creating a legally binding contract.

Original Offeree

The person to whom an initial offer is made in the context of contract negotiations or dealings.

Legal Power

The authority granted to an entity or individual by the law to perform certain actions or enforce decisions.

Acceptance

In contract law, the act of agreeing to the terms of an offer, thereby creating a binding contract.