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. Lenos Debt @ 104 Common stock, $10 par Total Common shares Hall $260,000 Debt @ 108 520,000 Common stock, $10 par $780,000 Total 52,000 Common shares $520,000 260,000 $780,000 26,000 a. Complete the following table given earnings before interest and taxes of $30,000. $78,000, and $80,000. 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? EBIT EBIT/TA % Lenow EPS Hall EPS S Total Assets S 780,000 780,000 $ 780,000 30,000 78,000 80,000 S 0 96 S % 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