Stock price valuation and IRR question for Berkshire's purchase of GEICO

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

I would like to receive a draft response to the following question which relates to the attached case study. Please show formula and calculation in response.

'Note the Value Line forecast of dividends (on P20). Value Line's forecasts of a share price of $90 at the low end of the range and $125 at the high end of the range at YR2000. What would Buffet expect the stock price to be at YR2000 to achieve his 28% average annual gain (or IRR) on the GEICO investment in 1995?'

© BrainMass Inc. brainmass.com April 3, 2020, 1:43 pm ad1c9bdddf
https://brainmass.com/business/bond-valuation/stock-price-valuation-and-irr-question-for-berkshire-s-purchase-of-geico-9174