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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 Hall Debt e 8% Common stock, $10 par300,000 Common stock, $10 par Total Common shares $150,000 Debt @ 8% $300,000 150,000 $450,000 15, 000 $450,000 Total 30,000 Common shares a. Complete the following table given earnings before interest and taxes of $19,000, $36,000, and $60,000. 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.) What is the relationship between the EPS of the two firms? EBIT Total Assets EBIT/TA % Lenow EPS Hall EPS $19,000$450,000 $36,000$450,000 $60,000450,000
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