Perpetuity

Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. A perpetuity is an annuity that has no definite end, or a stream of cash payments that continues forever. There are few actual perpetuities in existence. A number of types of investments are effectively perpetuities, such as real estate and preferred stock, and techniques for valuing a perpetuity can be applied to establish price. Perpetuities are but one of the time value of money methods for valuing financial assets. The concept is closely linked to terminal value and terminal growth rate in valuation.