Assignment 13-Capital Structure and Leverage 4. Understanding business and financial risks The total nsk in a firm is determined by evaluating the firm's business nsk and financial risk. As Aa As an analyst, Olivia is comparing two nearly identical manufacturing firms: Happy Turtle Manufacturing Companry and Orange Snail Production Inc. It is your job to evaluate the relative business and financial risks of Happy Turtle and Orange Snail. The two firms have the same level of total assets and expected net operating profit after taxes (NOPAT), but they differ in two critical characteristics: total debt and the standard deviation of the expected NOPAT. The following table outlines some of Happy Turtle's and Orange Snail's major attributes: Total assets Total debt Expected NOPAT Standard deviation of expected NOPAT Happy Turtle Orange Snail Manufacturing Inc. Production Inc $5,200,000 $1,040,000 $1,248,000 $223,600 $5,200,000 $2,600,000 $1,248,000 348,400