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. Debt @ 10% Lenow Common stock, $10 par Total Common shares Hall $ 80,000 Debt @ 10% $160,000 160,000 Common stock, $10 par $240,000 Total 16,000 Common shares 80,000 $240,000 8,000 a. Complete the following table given earnings before interest and taxes of $13,000, $24,000, and $53,000. 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 13,000 $ 240,000 EBIT/TA % Lenow EPS Hall EPS % 24,000 $ 240,000 % $ 53,000 $ 240,000 % the EPS of the two firms? 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. c. If the cost of debt went up to 12 percent and all other factors remained equal, what would be the break-even level for EBIT? Break-even level