The CAPM approach differs from Gordon constant growth model in determining the required rate of return (or cost of equity) in that:

		Theoretically are not equivalent models although both models correctly evaluate the rate of return (or cost of equity)
		With CAPM it is possible to take into consideration the floatation cost of common stock equity
		Theoretically both models are equivalent although Gordon constant growth model is stronger in its fundamental theory
		Directly considers risk as reflect by beta