Delayed Perpetuity
Definition
A perpetual cash flow stream that starts in the future. For instance, a stock pays $5 annual dividend in perpetuity beginning ten years from now. The net present value of a delayed perpetuity is computed as C * (1 / r) * ((1 + r) ^t; where c is the cash flow, r is the discount rate and t is the time.
Nearby Terms
- Similar companies