Hi All - So I’m working on calculating the intrinsic value of a stock using the two stage dividend discount model. Conceptually it is simple enough. For example, question 17 in Reading 51 of the most recent Equity and Fixed Income book requires calculating the PV for 4 dividend payments and then a final value calculated by the Gordon Growth model. I can get the right answer by 1) actually computing all the fractions out by hand or 2) by entering each cash inflow as a FV, setting PMT to 0, I/Y to the required rate of return and N to the appropriate periods and for each cash flow compute the PV.

Both of these methods are time-consuming and, if they are the fastest way to solve the problem then so be it. But is there a quicker, more efficient way to solve the problem on the BA II Plus calculator?

Thanks, Dan