16. Lenow's Drug Stores and Hall's Pharmaceuticals are competitors in the discount Earnings per share drug chain store business. The separate capital structures for Lenow and Hall are and financial presented here: leverage (LOS-4) Lenow Debt o 10% $100,000 Debt 10% $200,000 Common stock, $10 par 200,000 Common stock, $10 par 100,000 Total $300,000 Total $300,000 Shares 20,000 Common shares 10,000 Hall a. Compute earnings per share if earnings before interest and taxes are $20,000, $30,000, and $120,000 (assume a 30 percent tax rate). b. Explain the relationship between carnings per share and the level of EBIT. c. 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