explain how the value of a business depends on who is managing it and what strategy they pursue.

Use only the Book “Value” by Tim Koller attached to this post.  Find the fact in the book and answer the relative question. Give examples of numerical to further elaborate on the answer.

Write precisely in financial terms. Don’t give any messy writing stuff.

1000 words each question

For any facts give logical financial reasoning

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: 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.