Lenows Drug Stores and Halls Pharmaceuticals are competitors in the discount drug chain store business. The separate capital structures for Lenow and Hall are presented next.

Lenow				Hall
Debt @ 8%	$	90,000		Debt @ 8%	$	180,000
Common stock, $10 par		180,000		Common stock, $10 par		90,000
Total	$	270,000		Total	$	270,000
Common shares		18,000		Common shares		9,000

a.

Complete the following table given earnings before interest and taxes of $14,000, $21,600, and $54,000. Assume the tax rate is 10 percent. (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)

EBIT	Total assets	EBIT/TA	Lenow EPS	Hall EPS	What is the relationship between the EPS of the two firms?
$ 14,000	$270,000	%	$	$	(Click to select)Lenow's EPS > Hall's EPSLenow's EPS = Hall's EPSLenow's EPS < Hall's EPS
$ 21,600	$270,000	%	$	$	(Click to select)Lenow's EPS > Hall's EPSLenow's EPS = Hall's EPSLenow's EPS < Hall's EPS
$54,000	$270,000	%	$	$	(Click to select)Lenow's EPS > Hall's EPSLenow's EPS = Hall's EPSLenow's EPS < Hall's EPS