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 Debt @ 8% Common stock, $10 par Total Common shares Hall $240,000 Debt @ 8% 480,000 Common stock, $10 par $720,000 Total 48,000 Common shares $ 480,000 240,000 $720,000 24,000 a. Complete the following table given earnings before interest and taxes of $28,000, $57,600, and $72,000. Assume the tax rate is 10 percent. (Negative amounts should be indicated by parentheses or a minus sign. Round your answers to 2 decimal places.) What is the relationship between the EPS of the two firms? EBIT/TA % Lenow EPS Hall EPS $ $ $ EBIT 28,000 57,600 72,000 Total Assets $ 720,000 $ 720,000 $ 720,000 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