Why is common that firms with higher return on net operating

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Problem 1: Explain why it is common that firms with higher return on net operating assets (RONA) also have negative free cash flows. Also explain why such firms tend to have above-average forward P/E ratio.

Problem 2: Describe the characteristics of firms with a high P/E ratio but a low P/B ratio.

Problem 3: Explain why a firm can have a high trailing P/E ratio but have a low expected earnings growth rate in the future.

Problem 4: List four (4) features in the financial statements that help to identify a firm as a growth firm.

Reference no: EM132754964

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