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If you are a Finance student you need to understand this topic as it is a sub-topic of Finance. Propriety is a series of cash flow which continues forever. It’s is not a difficult topic to understand if you study the topic sincerely. Thankfully, our perpetuity homework help service is here to provide you a detailed analysis of this topic. Highly qualified and experienced online experts work in myhomeworkhelp.com which is one of the best homework help service providers.
Concept:
Perpetuity denotes a fixed amount time. In finance, perpetuity is a type of annuity which is a constant stream of cash payments. Although the total face value of perpetuity is infinite the present value is not undeterminable.
Formula:
The main formula of calculating perpetuity is cash flows divided by discount rates. The formula which is used to calculate terminal year in stream of cash payments for valuation purposes is a bit more complicated. It is the valuation of cash payments in 10th year of the company multiplied by 1 plus the company’s long-term growth rate and then divided by the difference between the cost of capital and growth rate. To get more information on the formula of perpetuity visit myhomeworkhelp.com.
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