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% $ 90,000 Common stock, $10 par 180,000 Total $270,000 Common shares 18,000 Hall Debt @ 8% Common stock, $10 par Total Common shares $180,000 90,000 $270,000 9,000 a. Complete the following table given earnings before interest and taxes of $14,000. $21,600, and $54,000. 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 EBIT/TA % Lenow EPS Hall EPS the EPS of the two firms? $ 14.000 270.000 $ 21.800 $ 270,000 $ 54,000 $ 270,000 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 0 % 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