A Perpetuity Calculator computes the present value of an infinite series of equal cash flows (dividends or coupons) received at regular intervals. This financial tool is based on the perpetuity formula PV = C / r, where:

PV = Present Value (current worth of all future payments)

C = Constant payment per period (dividend/coupon amount)

r = Discount rate (required rate of return as decimal)

Key applications include:

Valuing perpetual bonds and preferred stocks

Estimating endowment fund requirements

Financial planning for infinite income streams

Academic study of time value of money concepts

Note: This calculator assumes no growth in payments. For growing perpetuities, the formula becomes PV = C / (r - g) where g is the growth rate.

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