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The total risk in a firm is determined by evaluating the firm's business risk and financial risk. As an analyst, Ollivia is comparing two nearly

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The total risk in a firm is determined by evaluating the firm's business risk and financial risk. As an analyst, Ollivia is comparing two nearly identical manufacturing firms: Hoover Water and Power Corp. and Teton Power & Water Inc. It is your job to evaluate the relative business and financial risks of Hoover W&P and Teton P&W The two firms have the same level of total assets and expected net operating profit after taxes (NOPAT), but they differ on two critical characteristics: total debt and the standard deviation of expected NOPAT. The following table outlines some of Hoover WBP's and Teton PSW's characteristics: Total assets Hoover W&P $5,200,000 1,196,000 1,248,000 348,400 Teton P&W $5,200,000 2,340,000 Total debt Expected NOPAT Standard deviation of expected NOPAT 1,248,000 223,600 Use the given financial data to indicate which firm has the higher degree of each type of risk Which firm has more business risk? O Hoover Water and Power Corp. Teton Power & Water Inc Which firm has more financial risk? Teton Power & Water Inc. Hoover water and Power Corp. The total risk in a firm is determined by evaluating the firm's business risk and financial risk. As an analyst, Ollivia is comparing two nearly identical manufacturing firms: Hoover Water and Power Corp. and Teton Power & Water Inc. It is your job to evaluate the relative business and financial risks of Hoover W&P and Teton P&W The two firms have the same level of total assets and expected net operating profit after taxes (NOPAT), but they differ on two critical characteristics: total debt and the standard deviation of expected NOPAT. The following table outlines some of Hoover WBP's and Teton PSW's characteristics: Total assets Hoover W&P $5,200,000 1,196,000 1,248,000 348,400 Teton P&W $5,200,000 2,340,000 Total debt Expected NOPAT Standard deviation of expected NOPAT 1,248,000 223,600 Use the given financial data to indicate which firm has the higher degree of each type of risk Which firm has more business risk? O Hoover Water and Power Corp. Teton Power & Water Inc Which firm has more financial risk? Teton Power & Water Inc. Hoover water and Power Corp

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