Question: 1) Explain why a firm can have a low trailing P/E ratio but have a high expected earnings growth rate in the future. 2)Explain why

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

2)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.

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

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

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

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