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Black Berry Farms and Pea Pod Farms are each able to generate EBIT of $338,000. The separate capital structures for Black Berry and Pea Pod

Black Berry Farms and Pea Pod Farms are each able to generate EBIT of $338,000. The separate capital structures for Black Berry and Pea Pod are presented below. Black Berry Pea Pod Debt 13% Common stock $1,350,000 1,250,000 Debt 13% Common stock $950,000 1,650,000 Total $2,600,000 Total $2,600,000 Common shares 250,000 Common shares 338,000 a. Compute EPS for both firms (assume a 40 percent tax rate). (Round the final answers to 2 decimal places.) EPS Black Berry $ 027 Pea Pod $ 0.26 b. Assuming a P/E ratio of 36 for each firm, what would be each firm's share price? (Round your intermediate calculations and final answers to 2 decimal places.) Share price Black Berry Pea Pod $ c. Assume the P/E ratio would be 31 for the riskier company in terms of heavy debt utilization in the capital structure and 42 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.) Share price Black Berry $ Pea Pod $ d. This part of the question is not part of your Connect assignment

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