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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

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% $150,000 Debt Ex $300,000 Common stock, $10 par Total 300,000 Common stock, $10 par $450,000 Total Common shares 30,000 Common shares 150,000 $450,000 15,000 a. Complete the following table given earnings before interest and taxes of $19,000, $36,000, and $60,000. 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 EBIT $ $ Total Assets 19,000 $ 450,000 36,000 $ 450,000 EBIT/TA % Lenow EPS Hall EPS the EPS of the two firms? Lenow EPS 2 16 ponts effo b-2. What is the cost of debt? Cast of dubt b-3. State the relationship between eamings per share and the level of EBIT EPS is unaffected by financial leverage when the pre-tax retum on assets (TTA) the cast of d 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

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