Question
Which of the following descriptions of the residual operating income (ROPI) model is inaccurate? Select one: A. ROPI analysis focuses on the amount by which
Which of the following descriptions of the residual operating income (ROPI) model is inaccurate? Select one:
A. ROPI analysis focuses on the amount by which shareholder value is created during a period.
B. ROPI is positive when NOPAT is higher than WACC NOABeg.
C. ROPI is useful as a management tool as it forces managers to pay attention to both the income statement and the balance sheet.
D. One critique of the ROPI model is that it focuses managers' attention solely on short-term operating assets and neglects investment in long-term operating assets. E. None of the above
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