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

question 84

Essay

Between 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?


Definitions:

Buy Or Sell Stock

The action of purchasing (buying) or offloading (selling) shares of a company through a stock exchange or other trading platforms.

Proxy Fight

A proxy fight is a battle for control over a company, where competing parties try to win shareholder votes to implement corporate actions or policies.

Dissident Group

A dissident group refers to a faction within an organization that disagrees with the majority or official policies and seeks to challenge or change them.

Beta

Beta is a measure of the volatility of a security or portfolio compared to the market as a whole. It indicates the tendency of a security's returns to respond to swings in the market.

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