9 Please submit your comprehensive responses to the following 4/four questions. Substantiating your answers with numerical examples earns marks. Overview: Companies exist to meet customer needs in a way that translates into reliable returns to investors. When people invest they expect their investment to increase by an amount that sufficiently compensate them for the risk they took, as well as for the time value of their money (.e.. TVM). Therefore, knowing how to create and measure value is an essential tool for managers and executives, Fact 1: The faster companies can grow their revenues and deploy more capital at attractive rates of return, the more value they create. The combination of growth and return on invested capital (ROIC) drives value and value creation Question 1: Comprehensively explain, using numerical examples, why companies create value by investing capital, from investors, to generate future cash flow at rate of return exceeding the cost of capital. Fact 2: Anything that doesn't increase cash flows, via improving revenues and returns on capital, doesn't create value Question 2: Comprehensively explain, using numerical examples, how, as a corrolary to Fact 1, value is created by companies, for shareholders, when companies generate higher cash flows, not when rearanging investors' claims on those cash flows. Fact 3: Too many times, the price of a stock does not reflect the financial results of a company Question 3: Explain why and how a company's performance on the stock market is driven by changes in the stock market expectations, not just by the company's actual performance Fact 4: There is no such number as an inherent value for a business, rather a business has a given value only relative to who owns and operates it Question 4: Comprehenively explain how the value of a business depends on who is managing it and what strategy they pursue. Different owners will generate different cash flows for a given business based on their unique ability to add value. Good luck PREVIOUS A Next REPLY REPLY ALL FORWARD X 9 Please submit your comprehensive responses to the following 4/four questions. Substantiating your answers with numerical examples earns marks. Overview: Companies exist to meet customer needs in a way that translates into reliable returns to investors. When people invest they expect their investment to increase by an amount that sufficiently compensate them for the risk they took, as well as for the time value of their money (.e.. TVM). Therefore, knowing how to create and measure value is an essential tool for managers and executives, Fact 1: The faster companies can grow their revenues and deploy more capital at attractive rates of return, the more value they create. The combination of growth and return on invested capital (ROIC) drives value and value creation Question 1: Comprehensively explain, using numerical examples, why companies create value by investing capital, from investors, to generate future cash flow at rate of return exceeding the cost of capital. Fact 2: Anything that doesn't increase cash flows, via improving revenues and returns on capital, doesn't create value Question 2: Comprehensively explain, using numerical examples, how, as a corrolary to Fact 1, value is created by companies, for shareholders, when companies generate higher cash flows, not when rearanging investors' claims on those cash flows. Fact 3: Too many times, the price of a stock does not reflect the financial results of a company Question 3: Explain why and how a company's performance on the stock market is driven by changes in the stock market expectations, not just by the company's actual performance Fact 4: There is no such number as an inherent value for a business, rather a business has a given value only relative to who owns and operates it Question 4: Comprehenively explain how the value of a business depends on who is managing it and what strategy they pursue. Different owners will generate different cash flows for a given business based on their unique ability to add value. Good luck PREVIOUS A Next REPLY REPLY ALL FORWARD X