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eBook Hint Lenow Drug Stores and Hall Pharmaceuticals are competitors in the discount drug chain store business. The separate capital structures for Lenow and
eBook Hint 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 $100,000 200,000 Total Common shares $ 300,000 20,000 Debt 10% Common stock, $10 par Total Common shares $ 200,000 100,000 $ 300,000 10,000 a. Complete the following table given earnings before interest and taxes of $20,000, $30,000, and $120,000. Assume the tax rate is 30 percent. Note: Round your answers to 2 decimal places. Leave no cells blank be certain to enter O wherever required. EBIT Total Assets EBIT/TA% Lenow EPS Hall EPS What is the relationship between the EPS of the two firms? $ 20,000 $ 300,000 Print $ 30,000 $ 300,000 $ 120,000 $ 300,000 96 References
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