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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
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 es Common stock, 010 par Total Common shares Hall $240,000 Debt @ 8 480,000 Common stock, $10 par $720,000 Total 48,000 Common shares $480,000 240,000 $720,000 24,000 a. Complete the following table given earnings before interest and taxes of $28,000, $57,600, and $72,000. 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 EBIT/TA % Answer is complete and correct. What is the relationship between Lenow EPS Hall EPS the EPs of the two firma? 0.17 (0.39) Lenow EPS > Hall EPS 0.72 0.72 Lenow EPS Hall EPS 0.99 1.20 Lenow EPS
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