• This refers to a perpetuity that grows at a constant rate forever. Present value of such a growing perpetuity equals next years cash flow divided by the difference between the market capitalization rate and the growth rate. To be sustainable, growth rate must be less than the market capitalization rate.
• A constant stream of cash flows without end that is expected to rise indefinitely.
Getting Your Finances Ready for Your Golden Years: If you're seriously considering retirement, you also should be seriously thinking about how to ensure that your financial life is as comfortable and stress-free as possible. Here are a few tips. More...
Character cannot be developed in ease and quiet. Only through experiences of trial and suffering can the soul be strengthened, vision cleared, ambition inspired and success achieved. – Helen Adams Keller