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Black Berry Farms and Pea Pod Farms are each able to generate EBIT of $300,000. 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 $300,000. The separate capital structures for Black Berry and Pea Pod are presented below. Pea Pod Black Berry Debt 12% Common stock $1,3ee, eee 1,200,000 Debt 12% Common stock $900, eee 1,600,000 Total $2,500,000 Total $2,500,000 Common shares 240,000 Common shares 320,000 a. Compute EPS for both firms (assume a 40 percent tax rate) (Round the final answers to 2 decimal places.) Black Berry Pea Pod $ EPS b. Assuming a P/E ratio of 35 for each firm, what would be each firm's share price? (Round your intermediate calculations and final answers to 2 decimal places:) BlackBerry $ Pea Pod $ Share price Activate Window a. Compute EPS for both firms (assume a 40 percent tax rate). (Round the final answers to 2 decimal places.) Black Berry Pea Pod EPS $ b. Assuming a Ple ratio of 35 for each firm, what would be each firm's share price? (Round your intermediate calculations and final answers to 2 decimal places.) Black Berry Pea Pod Share price $ c. Assume the P/E ratio would be 30 for the riskier company in terms of heavy debt utilization in the capital structure and 41 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.) Black Berry Share price $ Pea Pod 5 d. This part of the question is not part of your Connect assignment

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