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 @ 84 Connon stock, $10 par Total Connon shares Hall $120,000 Debt @ 84 240,000 Common stock, $10 par $360,000 Total 24,000 Common shares $240,000 120,000 $360,000 12,000 a. Complete the following table given earnings before interest and taxes of $16,000, $28,800, and $57,000Assume 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 the EPS of the two firms? EBITTA Hall EPS % Lenow EPS % EBIT Total Assets $ 16,000 $ 380,000 $ 28,800 $ 360,000 $ 57,000 $ 360.000 % % 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 % es b-3. State the relationship between earnings per shore 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-evon level