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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

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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% Common stock, $10 par Total Common shares Hall $300,000 Debt @ 8% 600,eee Common stock, $10 par $900,000 Total 60,000 Common shares $600,000 300,000 $900,000 30,000 a. Complete the following table given earnings before interest and taxes of $34.000, $72,000 and $89,000. 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.) EBIT/TA $ 5 $ EBIT Total Assets 34.000 S 900.000 72,000 $ 900.000 89,000 $ 900.000 What is the relationship between % Lenow EPS Hall EPS the EPS of the two firms? SIS 0.15 Lenow EPS > Hall EPS % 5 72 $ 0.72 Lenow EPS Hall EPS %s 0.986 123 Lenow EPS Hall EPS

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