The text identifies three methods for estimating the cost of common stock from reinvested earnings (not newly issued stock): the CAPM method, the dividend growth method, and the bond-yield-plus-risk-premium method.However, only the dividend growth method is widely used in practice.

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All three methods (CAPM, dividend growth, and bond-yield-plus-risk-premium) are used in practice, each offering different advantages and fitting different scenarios based on the availability of data, the nature of the company, and the preferences of the analyst.

The Text Identifies Three Methods for Estimating the Cost of Common