Does anyone know how to use a calculator to solve for Irr(required rate of return) for multistage dividend discount model when current stock price is known. Its page 242 reading 39. Thanks
use the cash flow function on your calculator.
level I notes have all instructions for that
The example on page 242 is dealing with an unknown price for its terminal value given that you know the current price and dividends.
so post a big number on your cash flow for terminal value. find the pv.
post a smaller number on your cashflows - find pv again.
then linear interpolate between these two values to get the value.
post the problem here, and I can try. I do not have access to pg 242 to help otherwise!