The following are statements regarding corporate financial strategy and governance. For each statement $($Questions $1-5),$ indicate whether you think the writers of the McKinsey Value text would likely $$Agree$$ or $$Disagree$$

$1.$ The purpose of a business corporation is to provide customers with valuable products and services. To do this, companies seek to generate financial returns sufficient to attract the capital needed to fund the operations and growth of their business.

$2.$ Growth is inherently value enhancing, and companies consistently increase value by increasing the size of the company.

$3.$ Companies increase value by investing capital to generate increased EPS. Capital investments, share buybacks and acquisitions are all value enhancing if they generate increased pro forma EPS.

$4.$ Companies increase value by diversifying their operations. Shareholders will pay more for the stock of a diversified company than for one operating in a single line of business.

$5.$ Financial engineering increases the intrinsic value of a business by rearranging investors$$ claims on corporate cash flow, even absent any increase in the amount of cash flow.