The correct answer is C. Yield to maturity method.
The dividend yield method, dividend yield plus growth method, and earnings yield method are all methods of calculating the cost of equity capital. The yield to maturity method is a method of calculating the return on a bond. It is the annual interest rate that a bondholder receives on a bond, assuming that the bond is held to maturity.
The dividend yield method is a simple way to calculate the cost of equity capital. It is the annual dividend paid by a company divided by the current market price of the company’s stock.
The dividend yield plus growth method is a more complex way to calculate the cost of equity capital. It takes into account the company’s dividend yield and its expected growth rate.
The earnings yield method is a way to calculate the cost of equity capital that is based on a company’s earnings. It is the company’s earnings per share divided by the current market price of the company’s stock.
The yield to maturity method is not a method of calculating the cost of equity capital because it is a method of calculating the return on a bond. The cost of equity capital is the return that investors expect to earn on their investment in a company’s stock.