Question 1: Comprehensively explain, using numerical examples, why companies create value by investing capital, from investors, to generate future cash flow at a rate of return exceeding the cost of capital.

Question 2: Comprehensively explain, using numerical examples, how, as a corollary to Fact 1, value is created by companies, for shareholders, when companies generate higher cash flows, not when rearranging investors' claims on those cash flows.

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.

Question 4: Comprehensively 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.