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 Hall $ 200,000 400,000 $ 600,000 40,000 Debt @ 10% Common stock, $10 par Total Common shares $ 400,000 200,000 $ 600,000 20,000 Common stock, $10 par Total Common shares a. Complete the following table given earnings before interest and taxes of $24,000, $60,000, and $65,000. Assume the tax rate is 30 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 O wherever required. EBIT $ Total Assets 24,000 $ 600,000 EBIT/TA % Lenow EPS Hall EPS What is the relationship between the EPS of the two firms? % $ 60,000 $ 600,000 % $ 65,000 $ 600,000 % 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