Perpetuity factor: Difference between revisions
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''Financial maths.'' | ''Financial maths.'' | ||
(PF). | |||
A perpetuity factor is the fraction 1/r, used when evaluating a fixed perpetuity. | A perpetuity factor is the fraction 1/r, used when evaluating a fixed perpetuity. | ||
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== See also == | == See also == | ||
* [[Annuity factor]] | * [[Annuity factor]] | ||
* [[Capitalisation factor]] | |||
* [[Discount factor]] | |||
* [[Discounted cash flow]] | |||
* [[Dividend growth model]] | |||
* [[Growing perpetuity factor]] | |||
* [[Perpetuity]] | * [[Perpetuity]] | ||
[[Category:Corporate_finance]] | [[Category:Corporate_finance]] | ||
[[Category:Long_term_funding]] | [[Category:Long_term_funding]] | ||
Latest revision as of 16:40, 23 June 2024
Financial maths.
(PF).
A perpetuity factor is the fraction 1/r, used when evaluating a fixed perpetuity.
Using this simple formula assumes a constant periodic cost of capital (r) for all periods from now to infinity.
Sometimes known as the Perpetuity formula.
