Black Berry Farms and Pea Pod Farms are each able to generate EBIT of $$198,000.$ The separate capital structures for Black Berry and

Pea Pod are presented below.

a$.$ Compute EPS for both firms $($assume a $40$ percent tax rate$).($Round the final answers to $2$ decimal places.$)$

b$.$ Assuming a P$/$E ratio of $32$ for each firm, what would be each firm's share price? $($Round your intermediate calculations and final

answers to $2$ decimal places.$)$

c$.$ Assume the $\frac{P}{E}$ ratio would be $22$ for the riskier company in terms of heavy debt utilization in the capital structure and $33$ for the

less risky firm. What would the share price now be for each firm? $($Round your intermediate calculations and final answers to $2$

decimal places.$)$