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From |
"David Scheuer" <david.scheuer@gmx.de> |

To |
statalist@hsphsun2.harvard.edu |

Subject |
st: Iterative solving of an equation |

Date |
Tue, 20 Apr 2010 11:17:53 +0200 |

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/

**Follow-Ups**:**Re: st: Iterative solving of an equation***From:*Stas Kolenikov <skolenik@gmail.com>

**st: RE: Iterative solving of an equation***From:*"Feiveson, Alan H. (JSC-SK311)" <alan.h.feiveson@nasa.gov>

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