Question
n the table below is some information about Garneau Inc. and Strathcona Inc.: Garneau Inc Strathcona Inc total assets $8,000,000 $8,000,000 total debt $3,000,000 $2,000,000
n the table below is some information about Garneau Inc. and Strathcona Inc.:
| Garneau Inc | Strathcona Inc | |
| total assets | $8,000,000 | $8,000,000 |
| total debt | $3,000,000 | $2,000,000 |
| Expected NOPAT (net operating profits after taxes) | $1,500,000 | $1,500,000 |
| Standard deviation of expected NOPAT | $421,000 | $215,000 |
| Strathcona Inc. has more business risk and more financial risk. | ||
| Garneau Inc has more business risk and more financial risk. | ||
| 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. |
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
3rd Edition
0073382426, 9780073382425
