Perpetuity factor: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Layout) |
imported>Doug Williamson (Layout.) |
||
| Line 1: | Line 1: | ||
''Financial maths.'' | |||
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. | Using this simple formula assumes a constant periodic cost of capital (r) for all periods from now to infinity. | ||
Revision as of 14:34, 26 June 2019
Financial maths.
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.
