There are three methods for estimating the cost of common stock from reinvested earnings (not newly issued stock) : the CAPM method, the DCF method, and the bond-yield-plus-risk-premium method. However, only the CAPM method always provides an accurate and reliable estimate. True or false?
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Home » Business » There are three methods for estimating the cost of common stock from reinvested earnings (not newly issued stock) : the CAPM method, the DCF method, and the bond-yield-plus-risk-premium method.