Perpetuity factor: Difference between revisions
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== See also == | == See also == | ||
* [[Annuity factor]] | * [[Annuity factor]] | ||
* [[Discount factor]] | |||
* [[Discounted cash flow]] | * [[Discounted cash flow]] | ||
* [[Dividend growth model]] | * [[Dividend growth model]] | ||
Revision as of 19:55, 30 October 2021
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.
