It makes perfect economic sense to assume the dividend payment being made till perpetuity because of two reason
1) The value of the cash flow received at the end of the 50 year is very less and so is the present value of a rupee received at the end of 200 years. It is almost a 20 millionth of a cent when discounted.
2) It makes the computations much more simpler and easy to handle. This is so becuase assuming a perpetual life removes the exponential terms from the formula and leaves us with simple algebraic formula.
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