Difference between revisions of "Growing Perpetuity"

Revision as of 18:38, 27 August 2020

Growing Perpetuity

@@ Line 1: / Line 1: @@
-Growing [[Perpetuity|Perpetuities]] are perpetuities where the cash you need to provide grows at a constant rate. This can be calculated by:
+Growing Perpetuity
-'''Present Value of Growing Perpetuity''' = <math>\frac{C_1}{r-g}</math>
-Where <math>r</math> is the [[Discount Factor|Discount Factor]] and <math>g</math> the growth rate in cost.
 [[Category:finance]]