Lenow Drug Stores and Hall Pharmaceuticals are competitors in the discount drug chain store business. The separate capital tructures for Lenow and Hall are presented here. Lenow Hall Debt @ 104 $200,000 Debt 184 $400,000 Common stock, $10 par 400,000 Common stock, $10 par 200,000 Total $600,000 Total $600,000 Common shares 40,000 Common shares 20,000 2. Complete the following table given earnings before interest and taxes of $24,000, $60,000, and $65,000. Assume the tax rate s 30 percent. (Negative amounts should be indicated by parentheses or a minus sign. Round your answers to 2 decimal places.) EBIT/TA What is the relationship between the EPs of the two firms? Hall EPS $ EBIT Total Assets 24,000 $ 600,000 60,000 $ 600,000 65,000 $ 600,000 % Lenow EPS % % % $ $ 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 retum on assets (EBITSTA) 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