Calculating the present value for a growing perpetuity

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Reference no: EM13987777

Which of the following is used as the denominator while calculating the present value for a growing perpetuity that begins next period (PVP)?

a. g (the constant rate of growth of the cash flow)

b. The difference between i (the discount or interest rate) and g (the constant rate of growth of the cash flow)

c. i (the discount or interest rate)

d. The addition of i (the discount or interest rate) and g (the constant rate of growth of the cash flow)

Reference no: EM13987777

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