Time Value and Perpetuities

I just need a few sentences for these two questions below. No need for APL formation, just a discussion. TIA. 1. We often use a version of the perpetuity formula to value stock.  That is, we consider a company as a “going concern” operating without an expected end, and paying out earnings to investors.  A perpetuity is a constant stream of cash flows without end.  Why doesn’t it have an infinite value?   (Stocks do not have an infinite value).  Under what cases can we easily calculate a perpetuity or stock’s value?    

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