Black Berry Farms and Pea Pod Farms are each able to generate EBIT of $$114,000.$ The separate capital structures for Black Berry and Pea Pod are presented below.

Black Berry Pea Pod

Debt @ $6\%$ $$1,000,000$ Debt @ $6\%$ $$600,000$

Common stock $900,000$ Common stock $1,300,000$

Total $$1,900,000$ Total $$1,900,000$

Common shares $180,000$ Common shares $260,000$

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 $29$ 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 $20$ for the riskier company in terms of heavy debt utilization in the capital structure and $31$ 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 Pea Pod

Share price $

$

d$.$ This part of the question is not part of your Connect assignment.