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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

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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 @ 9% $130,000 Debt @ 9% $260,000 130,000 Common stock, $10 par Total 260,000 Common stock, $10 par $390,000 Total $390,000 13,000 Common shares 26,000 Common shares. a. Complete the following table given earnings before interest and taxes of $17,000, $35,100, and $58,000. Assume the tax rate is 20 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 Total Assets $ 17,000 $ 390,000 % $ 35,100 $ 390,000 % $ 58,000 $ 390,000 %

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