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Address the limitations of traditional methods such as CAPM ( Capital Asset Pricing Model ) and Discounted Cash Flow Analysis in valuing a company's stock
"Address the limitations of traditional methods such as CAPM Capital Asset Pricing Model and Discounted Cash Flow Analysis in valuing a company's stock price in nonstationary market conditions. Particularly, discuss the consistency of the beta coefficient in determining the cost of capital and the selection of the riskfree rate. Also, evaluate how these traditional models can or cannot integrate nonfinancial factors eg company management, brand value, industry trends Lastly, discuss the alternative models used in stock valuation and the advantages and disadvantages of these models compared to traditional methods."
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