relationship between the stock performance and the fundamental performance of the company
Consider a company that is expected to generate the same FCF of $100 in perpetuity with no growth, and it does not have any debt. Assume that markets are efficient and that the stock is correctly priced based on its discounted cash flows. The company generates a profit and holds it in its cash account instead of reinvesting it. This company's stock price should then remain constant overtime if those expectation holds. How would investors in the stock see a return?
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