Explain whether or not a firm that has higher free cash flows has a higher value. Residual earnings valuation does not work for companies like Nike and Coca-Cola, which have substantial assets, like brands, research and development assets, and entrepreneurial know-how off the books. A low book value must give you a low valuation.' Explain whether or not you agree with this statement. 'Investing is not a game against nature, but a game against other investors.' Explain what this statement means. What does it imply about how to conduct equity investing? Explain why reformulated statements are necessary to discover operating profitability. 'A firm with positive net financial assets will typically have a required return for equity that is higher than the required return for its operations.' Explain whether or not you agree with this statement