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In the table below is some information about Garneau Inc. and Strathcona Inc.: Garneau Inc total assets $9,000,000 total debt $3,000,000 Expected NOPAT (net operating

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In the table below is some information about Garneau Inc. and Strathcona Inc.: Garneau Inc total assets $9,000,000 total debt $3,000,000 Expected NOPAT (net operating profits after taxes) $1,500,000 Standard deviation of expected NOPAT $220,000 Garneau Inc has more financial risk and Strathcona Inc has more business risk. Garneau Inc has more business risk and Strathcona Inc has more financial risk. Strathcona Inc $9,000,000 $2,500,000 $1,500,000 $335,000 Garneau Inc has more business risk and more financial risk. Strathcona Inc. has more business risk and more financial risk. In case of liquidation of a firm, the proceeds from the liquidation will be distributed in the following order: common shareholders first, then creditors, then lawyers. lawyers first, then creditors then common shareholders. common shareholders first, then creditors, then lawyers. creditors first, then lawyers, then common shareholders. Card Game Inc. has identified two methods for producing playing cards. One method involves using a machine having a fixed cost of $12,000 and variable costs of $1.00 per deck of cards. The other method would use a less expensive machine (fixed cost = $5,000), but with greater variable costs (S1.80 per deck of cards). If the selling price per deck of cards is the same under each method, at what level of output will the two methods produce the same net operating income (EBIT)? 5,000 decks 14,500 decks 10,250 decks 8.750 decks

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