present value of a perpetuity
amount of payments
The function perpetuity computes the present value of an instrument that pays the amount cash at the beginning of each period, forever, starting in one period.
An example of a perpetuity is a stock that pays the same dividends year after year.
Since perpetuity used to be part of the (now deprecated) finance package, for compatibility with older worksheets, this command can also be called using finance[perpetuity]. However, it is recommended that you use the superseding package name, Finance, instead: Finance[perpetuity].
Utility ABC pays a dividend of 1.5 units per share every year. Given a discount rate of 11%, what is the present value per share of those dividends?
The Finance[perpetuity] command was introduced in Maple 15.
For more information on Maple 15 changes, see Updates in Maple 15.
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