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 @ 8% Common stock, $10 par Total Common shares $ 240,000 480,000 $720,000 48,000 Debt @ 8% Common stock, $10 par Total 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. Note: Negative amounts should be indicated by parentheses or a minus sign. Round your answers to 2 decimal places. Leave no cells blank be certain to enter 0 wherever required. EBIT Total Assets EBIT/TA % Lenow EPS Hall EPS What is the relationship between the EPS of the two firms? $ 28,000 $ 720,000 $ 57,800 $ 720,000 $ 72,000 $ 720,000 b-1 What is the EBIT/TA rate when the firm's have equal EPS? EBIT/TA rate %6 b-2. What is the cost of debt? Cost of debt %6 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 10 percent and all other factors remained equal, what would be the break-even level for EBIT? Break-even level