Question: 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,

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.

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