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Black Berry Farms and Pea Pod Farms are each able to generate EBIT of $204,000. The separate capital structures for Black Berry and Pea Pod

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Black Berry Farms and Pea Pod Farms are each able to generate EBIT of $204,000. The separate capital structures for Black Berry and Pea Pod are presented below. Black Berry Debt @ 12% Common stock Pea Pod Debt @ 12% Common stock $900,000 800,000 on Total $1,700,000 Total Common shares 160,000 Common shares Choose... a. Compute EPS for Black Berry (assume a 40 percent tax rate). (Round the final answers to 2 decimal places.) b. Compute EPS for Pea Pod (assume a 40 percent tax rate). (Round the final answers to 2 decimal places.) Choose... - ALE c. Assuming a P/E ratio of 27 for each firm, what would be the share price for Black Berry? (Round your intermediate calculations and final answers to 2 decimal places.) Choose... - d. Assuming a P/E ratio of 27 for each firm, what would be the share price for Pea Pod? (Round your intermediate calculations and final answers to 2 decimal places.) Choose... - Choose.... e. Assume the P/E ratio would be 22 for the riskier company in terms of heavy debt utilization in the capital structure and 35 for the less risky firm. What would the share price now be for Black Berry? (Round your intermediate calculations and final answers to 2 decimal places.) f. Assume the P/E ratio would be 22 for the riskier company in terms of heavy debt utilization in the capital structure and 35 for the less risky firm. What would the share price now be for Pea Pod? (Round your intermediate calculations and final answers to 2 decimal places.) Choose Black Berry Farms and Pea Pod Farms are each able to generate EBIT of $204,000. The separate capital structures for Black Berry and Pea Pod are presented below. Black Berry Pea Pod Debt @ 12% $900,000 Debt @ 12% Common stock 800,000 Common stock $500,000 1,200,000 Total $1,700,000 Total $1,700,000 Common shares 160,000 Common shares 240,000

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