Ordahl Industries is a publicly traded company that issues both common stock and preferred stock. Currently, Ordahl's common stock is trading for $57.95. It plans to pay dividends of $3.22, $3.48, and $3.65 over the next three years, respectively. Ordahl's preferred stock is trading for $63.82 and pays annual dividends of $4.50. Ordahl's financial standings are similar to three privately traded companies and two publicly traded companies. Long-term Treasury stocks have a rate of 6.38%. Given this information, which is the BEST model for Ordahl's accountants to use to estimate the company's cost of equity?

• Aconstant-growth dividend model
• Bmultistage-growth dividend model
• Cperpetuity model
• Dcapital asset pricing model