Bookmark and Share    st: Solving equations iteratively  From  
"David Scheuer" <> Subject   st: Solving equations iteratively
Date   Wed, 05 May 2010 12:50:13 +0200  Hello everybody  I am
stuck in a problem. In order to rebuild cost of capital models,
which determine cost of capital implied as the internal rate of
return from a valuation model, I need to solve equations
iteratively.  For instance, this is the first (of 30) row in my
dataset and I want to find r_CT in every row by solving the
following equation.   p_0 = 27.09  bv_0 = 18.02  eps_1 = 2.72
eps_2 = 2.94  eps_3 = 3.32 eps_4 = 3.96  eps_5 = 3.24  bv_1 =
19.38 bv_2 = 20.85  bv_3 = 22.51  bv_4 = 24.49 g_CT = .0125
r_CT = .  where only r_CT is an unknown variable. I know that it
should be between 0 and 1 because it is an interest rate.  I
guess I have to write a program in mata but I am not quite
familiar with the syntax yet.  Thanks a lot for any suggestion.
I would appreciate it very much.  Have a nice day *   For
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