PV of Perpetuity Solution

STEP 0: Pre-Calculation Summary
Formula Used
PV of Perpetuity = Dividend/Discount Rate
PVp = 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
PVp = D/DR --> 35/0.12
Evaluating ... ...
PVp = 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)

Credits

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19 Present value Calculators

Present Value of Deferred Annuity
Go Present Value of Deferred Annuity = Ordinary Annuity Payment*(1-(1+(Interest Rate*0.01))^-Number of Periods)/((1+(Interest Rate*0.01)^Deferred Periods*(Interest Rate*0.01)))
Present Value of Deferred Annuity based on Annuity Due
Go Present Value of Deferred Annuity = Annuity Payment Due*(1-(1+(Interest Rate*0.01))^-Number of Periods)/((1+(Interest Rate*0.01))^(Deferred Periods-1)*(Interest Rate*0.01))
Present Value of Growing Annuity
Go Present Value of Growing Annuity = (Initial Investment/(Rate per Period-Growth Rate))*(1-((1+Growth Rate)/(1+Rate per Period))^(Number of Periods))
Growing Annuity Payment using Present Value
Go Initial Payment = Present Value*((Rate per Period-Growth Rate)/(1-(((1+Growth Rate)/(1+Rate per Period))^Number of Periods)))
Annuity Due for Present Value
Go Annuity Due Present Value = Payment made in Each Period*((1-(1/(1+Rate per Period)^(Number of Periods)))/Rate per Period)*(1+Rate per Period)
Present Value of Future Sum given compounding periods
Go Present Value = Future Value/(1+(Rate of Return/Compounding Periods))^(Compounding Periods*Number of Periods)
Number of Periods using Present Value of Annuity
Go Total Number of Periods = ln((1-(Present Value of Annuity/Cashflow per Period))^-1)/ln(1+Rate per Period)
Present Value of Ordinary Annuities and Amortization
Go Present Value = Payment made in Each Period*((1-(1+Rate per Period)^(-Total Number of Times Compounded))/Rate per Period)
Present Value of Annuity with Continuous Compounding
Go Present Value of Annuity = Cashflow per Period*((1-e^(-Rate per Period*Number of Periods))/(e^Rate per Period-1))
Present Value of Annuity
Go Present Value of Annuity = (Monthly Payment/Interest Rate)*(1-(1/(1+Interest Rate)^Number of Months))
Present Value of Future Sum given Number of Periods
Go Present Value = Future Value/exp(Rate of Return*Number of Periods)
Present Value for Continuous Compounding
Go Present Value with Continuous Compounding = Future Value/(e^(Rate per Period*Number of Periods))
Present Value Factor
Go Annuity Present Value Factor = (1-((1+Rate per Period)^(-Number of Periods)))/Rate per Period
Present Value of Lumpsum
Go Present Value of Lumpsum = Future Value/(1+Interest Rate per Period)^Number of Periods
Present Value of Stock with Constant Growth
Go Price of Stock = Estimated Dividends for Next Period/(Rate of Return-Growth Rate)
Present Value of Future Sum given Total Number of Periods
Go Present Value = Future Value/(1+Interest Rate)^Total Number of Periods
Present Value Continuous Compounding Factor
Go PV Continuous Compounding Factor = (e^(-Rate per Period*Total Number of Periods))
PV of Perpetuity
Go PV of Perpetuity = Dividend/Discount Rate
Present Value of Stock with Zero Growth
Go Price of Stock = Dividend/Rate of Return

PV of Perpetuity Formula

PV of Perpetuity = Dividend/Discount Rate
PVp = 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 PVp 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 PVp = 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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