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:

Corporate Culture

The shared values, beliefs, and practices that shape the social and psychological environment of a business organization.

Mission Statement

A short written declaration of an organization's core purpose and focus, that remains unchanged over time.

Core Values

Fundamental beliefs or guiding principles that dictate the behavior and action of an organization or individual.

Socialization Process

The process by which individuals learn and adopt the norms, values, behaviors, and social skills appropriate to their society.