Bookmark and Share

Notice: On April 23, 2014, Statalist moved from an email list to a forum, based at statalist.org.


[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

st: RE: Iterative solving of an equation


From   "Feiveson, Alan H. (JSC-SK311)" <[email protected]>
To   "[email protected]" <[email protected]>
Subject   st: RE: Iterative solving of an equation
Date   Tue, 20 Apr 2010 07:56:26 -0500

David - One way is to use -nl- 

See http://www.stata.com/support/faqs/lang/nl.html

Al Feiveson

-----Original Message-----
From: [email protected] [mailto:[email protected]] On Behalf Of David Scheuer
Sent: Tuesday, April 20, 2010 4:18 AM
To: [email protected]
Subject: st: Iterative solving of an equation

I am rebuilding cost of capital models, which determine cost of capital implied as the internal rate of return from a valuation model.

For instance, let me assume this is the first line in my dataset and I want to solve the following equation. 

Price_0 = 100
BookValue_0 = 50
EPS_1 = 3
BookValue_1 = 52
EPS_2 = 4.5
g = 0.04
x =?

100=50+(3-x*50)/(1+x)+(4-x*52)/((1+x)^2)+((4.5-x*54)*1.04)/((x-0.04)*(1+x)^2)

For example, in Excel, I would let the "Solver" find the solution for x.
How can I program STATA to find solutions like this for me?
-- 
GRATIS für alle GMX-Mitglieder: Die maxdome Movie-FLAT!
Jetzt freischalten unter http://portal.gmx.net/de/go/maxdome01
*
*   For searches and help try:
*   http://www.stata.com/help.cgi?search
*   http://www.stata.com/support/statalist/faq
*   http://www.ats.ucla.edu/stat/stata/

*
*   For searches and help try:
*   http://www.stata.com/help.cgi?search
*   http://www.stata.com/support/statalist/faq
*   http://www.ats.ucla.edu/stat/stata/


© Copyright 1996–2018 StataCorp LLC   |   Terms of use   |   Privacy   |   Contact us   |   Site index