Match the methods for calculating the costs of common equity to their provided descriptions.

a. Capital Asset Pricing Model This calculation method can only be used by companies that pay dividends. The calculation includes the dividend yield and growth in dividends. b. Bond Yield Plus Judgmental Risk Premium C. Constant Growth (or Discounted Cash Flow) This calculation includes the risk-free rate, the market risk premium, and an adjustment to the market risk premium using the measurement of the company's market risk. This method can be used only to determine the cost of existing common equity (retained earnings). This method is subjective based on the additional risk that a common equity investor would incur over and above the risk faced by a debt investor (lender) in the same company. The calculation adds a risk premium to the pre-tax cost of debt