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 @ 94 Connon stock, $10 par Total Common shares $ 70,000 140,000 $210,000 14,000 Debt 9% Common stock, $18 par Total Connon shares $ 140,000 70,000 $210,000 7,000 ces a. Complete the following table given earnings before interest and taxes of $12,000, $18,900, and $52,000. Assume the tax rate is 20 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. What is the relationship between the EBIT Total Assets EBIT/TA% Lenow EPS Hall EPS EPS of the two firms? $ 12,000 $ 210,000 % S 18,900 $ 210,000 % Lenow EPS Hall EPS Lenow EPS Hall EPS $ 52,000 $ 210,000 % Lenow EPS EBITITA rate Book b-2. What is the cost of debt? Hint Ask Cost of debt Print ferences 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) Check my work equals the 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) equals the cost of debt c. If the cost of debt went up to 11 percent and all other factors remained equal, what would be the break-even level for EBIT? Break-even level Prev 7 of 7 Navt