. QUESTION 4: (a) For each of the statements below, write T (True) or F (False) in the answer booklet next to the question number. For the statement which you believe is false, provide reasons why. (1) A firm has positive residual operating income (ROPI) in period t when its forecasted NOPAT in period t exceeds the expected amount computed as net operating assets at the start of period t multiplied by the cost of equity capital. (ii) In a leveraged firm, the equityholders' required return in period t is equal to the net operating assets at the start of period t multiplied by the cost of equity capital. (iii) The Price-to-NOA (PNOA) multiple is greater than 1 if the forecasted residual operating income (ROPI) in future years are positive. (iv) When a firm's residual income (RI) is constant over the horizon period starting in period t then grows at a constant rate g in the terminal period, its equity value at the start of period t can be computed as the earnings (i.e., net profit after tax) in period t+1 multiplied by a PE multiple that is equal to 1 divided by the cost of equity capital. (v) Valuing a firm using valuation multiples is based on rigorous theoretical underpinnings whereas the use of the discounted cash flow (DCF) and residual operating income (ROPI) models are driven by their intuitive appeal