Question: In 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 $2,000,000 $2,500,000

In 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 $2,000,000 $2,500,000 Expected NOPAT (net operating profits after taxes) $1,500,000 $1,500,000 Standard deviation of expected NOPAT $320,000 $415,000 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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