Apex Autos (NYSE: AA) and Pinnacle Trucks (NYSE: PT) are identical except for their debt-to-total assets ratios (D/TAs) and interest rates on debt. Each has $200,000 in assets, $50,000 EBIT, and a 25 percent marginal tax rate. AA has a D/TA ratio of 40 percent and pays 5 percent interest on its debt, whereas PT has a 60 percent D/TA ratio and pays 10 percent interest on debt. Each firm has 10,000 shares of common stock outstanding. Assume both firms are financed only by debt and common equity. What is AA's EPS? A) $4.80 B) $4.08 C) $3.85 D) $3.45 E) $3.06 What is AA's ROE? A) 28.8% B) 25.5% OC) 19% D) 17% E) 15% What is PT's EPS? A) $2.85 OB) $3.36 C) $3.85 D) $4.08 E) $4.80 What is PT's ROE? OA) 13.0% B) 15.0% OC) 21.0% D) 28.8% E) 35.6%