Perpetuity factor: Difference between revisions

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The fraction 1/r used when evaluating a fixed perpetuity.
''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.
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.
Line 7: Line 13:
== See also ==
== See also ==
* [[Annuity factor]]
* [[Annuity factor]]
* [[Discount factor]]
* [[Discounted cash flow]]
* [[Dividend growth model]]
* [[Growing perpetuity factor]]
* [[Perpetuity]]
* [[Perpetuity]]


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

Latest 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.


See also