16. Lenow Drug Stores and Hall Pharmaceuticals are competitors in the discount drug chain store business. The separate capital structures for Lenow and Hall are presented here: Lenow Hall Debt @ 10%... Common stock, $10 par Total Shares $100,000 Debt 10%... 200,000 Common stock, S10 par $300,000 Total 20,000 Common shares 5200,000 100,000 $300.000 10,000 a. Compute earnings per share if camnings before interest and taxes are $20,000, 530,000, and $120.000 (assume a 30 percent tax rate) b. Explain the relationship between earnings per share and the level of EBIT. If the cost of debt went up to 12 percent and all other factors remained equal, what would be the break-even level for EBIT