Perpetuity factor: Difference between revisions

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The fraction 1/r used when evaluating a fixed perpetuity.
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.
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.
Sometimes known as the Perpetuity formula.
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* [[Perpetuity]]
* [[Perpetuity]]


[[Category:Corporate_finance]]
[[Category:Long_term_funding]]
[[Category:Long_term_funding]]
[[Category:Corporate_finance]]

Revision as of 12:05, 16 November 2016

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.


See also