How do you calculate the discount rate here? Is it taken randomly?

Question

Drishti · Answer

Okay thank you!

Shreeram · Answer

Yes take it randomly unless and until given. in question but firstly take a dividend rate as rate to claculate NPV then if sum is negative then choose less than previous one if its positive then take larger than dividend rate

Drishti · Answer

I'm sorry what does lk mean?

Sheetal · Answer

See what I hv done is roughly solved kp using the og formula so I got one valu for kp using that valu Ik b/w which 2 nos. Does the kp fall ...now for ytm method Ik b/w which 2 values it will fall and then used those 2 values in irr formula to get precise kp using ytm formula

Drishti · Answer

Hey, it's illustration number 17 from the book

Sheetal · Answer

Mention which is this ques no. I hv solved similar ques I ll find and send u

How do you calculate the discount rate here? Is it taken randomly?

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