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21. value: 4.00 points Lenow's Drug Stores and Hall's Pharmaceuticals are competitors in the discount drug chain store business. The separate capital structures for Lenow
21. value: 4.00 points Lenow's Drug Stores and Hall's Pharmaceuticals are competitors in the discount drug chain store business. The separate capital structures for Lenow and Hall are presented here. Lenow Hall Debt @ 8% Common stock, $10 par $210,000 Debt@ 8% 420,000 Common stock, $10 par $630,000 Total 42,000 Common shares $420,000 210,000 $630,000 21,000 Total Common shares a. Complete the following table given earnings before interest and taxes of $25,000, $50,400, and $66,000. Assume the tax rate is 10 percent. (Negative amounts should be indicated by parentheses or a minus sign. Round your answers to 2 decimal places.) What is the relationship between Lenow EP S Total assets EBIT EBIT/TA % Hall EPS the EPS of the two firms? % 25,000 630,000 50,400$ 66,000 $ % $ 630,000 % 630,000
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