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 1ex Common stock, $10 par Total Common shares Hall $170,000 Debt 10% 340,000 Common stock, $10 par $518,000 Total 34,000 Common shares $340,000 170,000 $510,000 17,000 a. Complete the following table given earnings before interest and taxes of $21,000, $51,000, and $62,000. Assume the tax rate is 30 percent. (Negative amounts should be indicated by parentheses or a minus sign. Round your answers to 2 decimal places.) What is the relationship between the EPS of the two firms? EBITITA % Lenow EPS Hall EPS $ $ $ EBIT 21,000 51,000 62,000 Total Assets $ 510,000 $ 510,000 $ 510,000 10.00% 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