CHAPTER 4 TAKEAWAYS
This in expanded form becomes
(1) Perpetual Fixed Model (PXM)
This model assumes a fixed (constant) stream of cash flow that continues forever. It's hard to think of a company's post-forecast-period cash flows that would suit this model and therefore it's seldom if ever used.
(2) Finite Fixed Model (FXM)
Unlike the perpetual fixed model this model values a fixed cash flow stream for a finite period of NX years. Again it's unlikely to be a realistic prototype ...