3. Understandingbusiness Financial risks The total risk in a firm is determined by evaluating the firm's business risk and financial risk As an analyst, Olivia is comparing two nearly identical manufacturing firms: Atherton Aeronautics Co. and Universal Space Inc. It is your job to evaluate the relative business and Financial risks of Atherton and Universal The two firms have the same level of total assets and expected net operating profit after taxes (NOPAT), but they differ on two critical characteristics total debt and the standard deviation of expected NOPAT. The following table outlines some of Atherton's and Universal's characteristics Total assets Total debt Expected NOPAT Standard deviation of expected NOPAT Atherton Universal $4,400,000 $4,400,000 2,200,000 880,000 1,056,000 1,056,000 169,200 Use the given financial data to indicate which nem has the higher degree of each type of risk Which um has more business Atherton Aeronautics Co Universal Space Inc Which firm has more financial Universal Space in Atherton Aeronautics Co