Talk:Perpetuity

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When is common shares like a bond

[edit] Can we add a formula?

Would be good to have the formula for a perpetuity in the article - Present Value (perpetuity) = Annual Cash Flow / discount rate

PV = CF / r Jeffme 05:21, 12 November 2006 (UTC)

Done. Though it might be confusing as it is preceded by the sentence from an earlier author, "Additionally, because the principal is never repaid, there is no present value for the principal." -B0mbrman 17:43, 20 June 2006 (UTC)

[edit] Huh?

This article seems like it was written by financial geeks for financial geeks. Could someone please simplify it so the ordinary reader can understand it. Perhaps someone could give a step-by-step example of the calculation, and break out exactly what PV, A, and r represent. What is 'A'? Is it the dividend yield? What is 'r'? Also, the U.K.-specific stuff makes it confusing. I have no idea what a "pence per pound" is. Why do I care if the bond is used for war or not? 130.76.96.14 00:48, 1 August 2006 (UTC)