Mr. Conservative and Ms. Cowboy each have $500K to spend on Chipotle (CMG) franchises. Chipotle is offering franchises for $500K each. Mr. C purchases one franchise with his $500K. Ms. C purchases two franchises, by using $250K of her own funds for each franchise and having each franchise take out a loan of $250K to pay Chipotle. The loans are very long term, from Wells Fargo, with 10% annual interest. Here is more relevent financial information: Projected annual IS As purchased by for a single franchise Mr C Ms C Sales 500.00 500.00 Op. exp. -350.00 -350.00 Interest 0.00 EBT 150.00 -31.25 Tax NI per franchise -37.50 112.80 In a future year (not shown in the above projections), when sales at all CMG franchises drop by 50% or more, which investor's franchise(s) are at the most risk of going bankrupt? Choose one investor and one reason for your answer. As computed from the above projections, this investor's ROE is lower. This investor suffers from lack of diversification. The velocity of money causes this whenever times are bad. The lender may go bankrupt. Mr. C. This investor must pay loan interest irrespective of the level of revenue received. O Ms. C. On a total franchise basis (one for Mr. C and two for Ms. C), who enjoys the larger NI? Not enough information is provided to answer this question. O Mr. C. Both are the same. O Ms