Growing perpetuity factor: Difference between revisions
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Using this simple formula assumes a constant periodic cost of capital (r) for all periods from now to infinity. | Using this simple formula assumes a constant periodic cost of capital (r) for all periods from now to infinity. | ||
It | It also assumes a constant compound rate of growth (g) from the first cashflow to infinity. | ||
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== See also == | == See also == | ||
* [[Annuity factor]] | * [[Annuity factor]] | ||
* [[Compound]] | |||
* [[Cost of capital]] | |||
* [[Growing annuity factor]] | * [[Growing annuity factor]] | ||
* [[Growing perpetuity]] | * [[Growing perpetuity]] | ||
Revision as of 12:42, 8 April 2021
Financial maths.
(GPF).
A growing perpetuity factor is the fraction 1/(r-g), used when evaluating a growing perpetuity.
Using this simple formula assumes a constant periodic cost of capital (r) for all periods from now to infinity.
It also assumes a constant compound rate of growth (g) from the first cashflow to infinity.
Sometimes known as the Growing perpetuity formula.
