Check Lenow Drug Stores and Hall Pharmaceuticals are competitors in the discount drug chain store business. The separate capital structures for Lenow and Hall are presented here. Lenow Hall Debt 10% Common stock, $10 par $140,ee0 Debt 10% 280,e00 Common stock, $10 par $420,000 Total $280,000 140,000 $420,000 14,000 Total Common shares 28,000 Common shares a. Complete the following table given earnings before interest and taxes of $18,000, $42,000, and $59,000. Assume the tax rate is 30 percent. (Negative amounts should be indicated by parentheses or a minus sign. Round your answers to 2 decimal places.) What is the relationship between EBIT Total Assets EBITITA % Lenow EPS Hall EPS the EPS of the two firms? % 18,000 S 42,000 S 420,000 S 420,000 % 59.000 $ 420,000 % 16 of 19 b-1, What is the EBIT/TA rate when the firm's have equal EPS? EBIT/TA rate b-2. What is the cost of debt? Cost of debt b-3. State the relationship between earnings per share and the level of EBIT EPS is unaffected by financial leverage when the pre-tax return on assets (EBIT/TA) the cost of debt