They have the same total assests and expected earnings before interest and taxes, but they...
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Finance
They have the same total assests and expected earnings before interest and taxes, but they differ in 2 characteristics: total debt and volatility in the expected EBIT. With this in mind which of the following is true?
Strawberry 5 Yellow Dinosaur Production Inc. $5,200,000 $1,040,000 $1,248,000 Blue Strawberry Manufacturing Inc. $5,200,000 $2,600,000 $1,248,000 Total assets Total debt Expected EBIT Volatility in the Expected EBIT $348,400 $223,600 Use the given financial data to determine which of the following statements is true Yellow Dinosaur has higher business risk whereas Blue Strawberry has higher financial risk Yellow Dinosaur has higher financial risk whereas Blue Strawberry has higher business risk Blue strawberry has higher financial risk and higher business risk Yellow Dinosaur has higher financial risk and higher business risk

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