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

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Lenow's Drug Stores and Hall's Pharmaceuticals are competitors in the discount drug chain store business. The separate capital structures for Lenow and Hall are presented here. Hall Lenow 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, S21,600, and $54,000. 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 EBIT Total assets EBITITA Lenow EPS Hall EPS the EPS of the two firms? 14,000 270,000 5.19 21.600 270.000 8.00% 54,000 270,000 20.00

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