Following is information about Gamma Company and Rho Industries: a. Which firm would be considered to have the higher (i) business risk, (ii) financial risk, and (iii) total risk? Explain your answers. (i) has higher business risk because its degree of operating leverage is (ii) has higher financial risk because its degree of financial leverage is (iii) has higher total risk because its degree of total leverage is b. If sales for each firm turn out to be 11 percent higher than expected, what will be the effect on their (i) EBIT and (ii) EPS? Do not round intermediate calculations. Round your answers to three decimal places. (i) Gamma Actual EBIT = Expected EBIT Rho Actual EBIT = Expected EBIT (ii) Gamma Actual EPS = Expected EPS Rho Actual EPS = Expected EPS