LCM of two numbers

PV of Perpetuity Calculator

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Present Value Basics of Time Value of Money Future value

✖Dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.ⓘ Dividend [D]			+10% -10%
✖Discount Rate is the interest rate charged to commercial banks and other depository institutions for loans received from the Federal Reserve Bank’s discount window.ⓘ Discount Rate [DR]			+10% -10%

✖PV of Perpetuity is the present value of a constant stream of identical cash flows with no end.ⓘ PV of Perpetuity [PV_p]

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PV of Perpetuity Solution

STEP 0: Pre-Calculation Summary

Formula Used

PV of Perpetuity = Dividend/Discount Rate
PV_p = D/DR
This formula uses 3 Variables

Variables Used

PV of Perpetuity - PV of Perpetuity is the present value of a constant stream of identical cash flows with no end.
Dividend - Dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
Discount Rate - Discount Rate is the interest rate charged to commercial banks and other depository institutions for loans received from the Federal Reserve Bank’s discount window.

STEP 1: Convert Input(s) to Base Unit

Dividend: 35 --> No Conversion Required
Discount Rate: 0.12 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

PV_p = D/DR --> 35/0.12

Evaluating ... ...

PV_p = 291.666666666667

STEP 3: Convert Result to Output's Unit

291.666666666667 --> No Conversion Required

FINAL ANSWER

291.666666666667 ≈ 291.6667 <-- PV of Perpetuity

(Calculation completed in 00.004 seconds)

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PV of Perpetuity Formula

LaTeX Go

PV of Perpetuity = Dividend/Discount Rate
PV_p = D/DR

How to Calculate PV of Perpetuity?

PV of Perpetuity calculator uses PV of Perpetuity = Dividend/Discount Rate to calculate the PV of Perpetuity, PV of Perpetuity is the present value of a constant stream of identical cash flows with no end. PV of Perpetuity is denoted by PV_p symbol.

How to calculate PV of Perpetuity using this online calculator? To use this online calculator for PV of Perpetuity, enter Dividend (D) & Discount Rate (DR) and hit the calculate button. Here is how the PV of Perpetuity calculation can be explained with given input values -> 291.6667 = 35/0.12.

FAQ

What is PV of Perpetuity?

PV of Perpetuity is the present value of a constant stream of identical cash flows with no end and is represented as PV_p = D/DR or PV of Perpetuity = Dividend/Discount Rate. Dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders & Discount Rate is the interest rate charged to commercial banks and other depository institutions for loans received from the Federal Reserve Bank’s discount window.

How to calculate PV of Perpetuity?

PV of Perpetuity is the present value of a constant stream of identical cash flows with no end is calculated using PV of Perpetuity = Dividend/Discount Rate. To calculate PV of Perpetuity, you need Dividend (D) & Discount Rate (DR). With our tool, you need to enter the respective value for Dividend & Discount Rate and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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