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Perpetuity Homework help

Perpetuity denotes to an endless amount of time. In the investment sector, it is a stable stream of equal cash flows with no ending, such as with the British-issued bonds called as consoles. The concept of perpetuity is also utilized in financial speculation, for instance, in the DDM (dividend discount model).




This crucial formula used to compute perpetuity is cash flows divided by some rate of discount. The formula utilized to evaluate the terminal year in the stream of cash flows for evaluation reasons is a bit more intricate.


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