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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 @ 10% $ 100,000 Debt @ 10% $ 200,000 Common stock, $10 par 200,000 Common stock, $10 par 100,000 Total $ 300,000 Total $ 300,000 Common shares 20,000 Common shares 10,000 a. Complete the following table given earnings before interest and taxes of $20,000, $30,000, and $120,000. Assume the tax rate is 30 percent. (Round your answers to 2 decimal places.)
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