FormulaDen.com

Physics Chemistry Math Chemical Engineering Civil Electrical Electronics Electronics and Instrumentation Materials Science Mechanical Production Engineering Financial Health

PV of Perpetuity Formula

Fx Copy

LaTeX Copy

PV of Perpetuity is the present value of a constant stream of identical cash flows with no end. Check FAQs

PV p = \frac{D}{DR}

PV_p - PV of Perpetuity?D - Dividend?DR - Discount Rate?

PV of Perpetuity Example

With values

With units

Only example

Here is how the PV of Perpetuity equation looks like with Values.

Here is how the PV of Perpetuity equation looks like with Units.

Here is how the PV of Perpetuity equation looks like.

291.6667 = \frac{35}{0.12}

291.6667 = \frac{35}{0.12}

291.6667 = \frac{35}{0.12}

Tip: Use pencil ( Pencil

) icon above to edit Input Values and Units.

Calculate

Recalculate

Solution

Copy

Reset

You are here -

Home » Category

Financial » Category

Financial Accounting » Category

Present Value » fx PV of Perpetuity

PV of Perpetuity Solution

Follow our step by step solution on how to calculate PV of Perpetuity?

FIRST Step Consider the formula

PV p = \frac{D}{DR}

Next Step Substitute values of Variables

∴

PV p = \frac{35}{0.12}

Next Step Prepare to Evaluate

∴

PV p = \frac{35}{0.12}

Next Step Evaluate

∴

PV p = 291.666666666667

LAST Step Rounding Answer

∴

PV p = 291.6667

PV of Perpetuity Formula Elements

Variables

PV of Perpetuity

PV of Perpetuity is the present value of a constant stream of identical cash flows with no end.

Symbol: PV_p

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find PV of Perpetuity

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.

Symbol: D

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Dividend

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.

Symbol: DR

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Discount Rate

Other formulas in Present Value category

Go Present Value of Annuity

PVAnnuity = (\frac{p}{IR}) \cdot (1 - (\frac{1}{{(1 + IR)}^{n Months}}))

Go Present Value of Future Sum given compounding periods

PV = \frac{FV}{{(1 + (\frac{%RoR}{C n}))}^{C n \cdot n Periods}}

Go Present Value of Future Sum given Total Number of Periods

PV = \frac{FV}{{(1 + IR)}^{t}}

Go Present Value of Future Sum given Number of Periods

PV = \frac{FV}{\exp (%RoR \cdot n Periods)}

How to Evaluate PV of Perpetuity?

PV of Perpetuity evaluator uses PV of Perpetuity = Dividend/Discount Rate to evaluate 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 evaluate PV of Perpetuity using this online evaluator? To use this online evaluator for PV of Perpetuity, enter Dividend (D) & Discount Rate (DR) and hit the calculate button.

FAQs on PV of Perpetuity

What is the formula to find PV of Perpetuity?

The formula of PV of Perpetuity is expressed as PV of Perpetuity = Dividend/Discount Rate. Here is an example- 291.6667 = 35/0.12.

How to calculate PV of Perpetuity?

With Dividend (D) & Discount Rate (DR) we can find PV of Perpetuity using the formula - PV of Perpetuity = Dividend/Discount Rate.

Let Others Know

✖

Facebook

Twitter

Copied!

: Value
: Unit

PV of Perpetuity Formula

PV of Perpetuity Example

PV of Perpetuity Solution

PV of Perpetuity Formula Elements

Other formulas in Present Value category

How to Evaluate PV of Perpetuity?

FAQs on PV of Perpetuity

Variable Name