Cain Auto Supplies and Able Auto Parts are competitors in the aftermarket for auto supplies. The separate capital structures for Cain and Able are presented below. Cain Able Debt 9 Debt 9 $220,000 440,000 $440,000 220,000 Common stock Common stock Total $660,000 Total $660,000 Common shares Common shares 22,000 44,000 a. Compute EPS if EBIT are $44,000, $59,400, and $67,000 (assume a 20 percent tax rate). (Round the final answers to 2 decimal places. Do not leave any empty spaces; input a O wherever it is required.) Able Cain EPS at $44,000 EPS at $59,400 S EPS at $67,000 b. What is the relationship between EPS and level of EBIT? 1. Earninqs before interest and taxes is less than cost of debt (Click to select) 2. Earnings before interest and taxes equals cost of debt (Click to select) (Click to select) 3. Earnings before interest and taxes is greater than cost of debt. Cain does better Both are at equilibrium Able does better the cost of debt went up to 11 percent and all other factors remained equal, ence point for EBIT? C. Break-even level