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 $300,000 Debt @ 8% 600,000 Common stock, $10 par $900,000 Total 60,000 Common shares $600,000 300,000 $900,000 30,000 b-2. What is the cost of debt? Answer is complete but not entirely correct. Cost of debt 7 X % c. If the cost of debt went up to 10 percent and all other factors remained equal, what would be the break-even level for EBIT? Break-even level