Question: #2: As a venture capitalist, you are comparing two startups: ArtHub and Sakura. These two startups are about the same size (in terms of assets

 \#2: As a venture capitalist, you are comparing two startups: ArtHub

\#2: As a venture capitalist, you are comparing two startups: ArtHub and Sakura. These two startups are about the same size (in terms of assets and sales). However, ArtHub is highly leveraged (i.e., raised a lot of debt) compared to Sakura. Suppose that both ArtHubland Sakura reported a net profit margin of 20%. Do you expect ArtHub and Sakura to have similar operating performance (i.e., operating profit margin) as well? Why or why not? Provide your reasoning. Your analysis should be solely based on the information provided in this question. [2 pts]

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