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n the table below is some information about Garneau Inc. and Strathcona Inc.: Garneau Inc Strathcona Inc total assets $9,000,000 $9,000,000 total debt $3,000,000 $2,500,000
n the table below is some information about Garneau Inc. and Strathcona Inc.:
Garneau Inc | Strathcona Inc | |
total assets | $9,000,000 | $9,000,000 |
total debt | $3,000,000 | $2,500,000 |
Expected NOPAT (net operating profits after taxes) | $1,500,000 | $1,500,000 |
Standard deviation of expected NOPAT | $220,000 | $335,000 |
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. | ||
Garneau Inc has more business risk and more financial risk. | ||
Strathcona Inc. has more business risk and more financial risk. |
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