4 Perpetuity with Growth

This video explains the perpetuity with growth, also known as the Gordon growth model, a key concept in finance. We'll explore the formula used to calculate the present value of future dividends that are expected to grow at a constant rate indefinitely. Learn the intuition behind this model and understand why it breaks down when the growth rate approaches or exceeds the required rate of return. This explanation will provide valuable insights into valuing growing cash flows. Visit AxiomTutoring.com and subscribe to @AxiomTutoringCourses.