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 Lenow Hall Debt @ 9% $250,000 Debt @ 9% $500,000 Common stock, $10 par 500,000 Common stock, $10 par_250,000 Total $750,000 Total 750,000 25,000 Common shares 50,000 Common shares a. Complete the following table given earnings before interest and taxes of $29,000, $67,500, and $73,000. Assume the tax rate is 20 percent. (Negative amounts should be indicated by parentheses or a minus sign. Round your answers to 2 decimal places.) What is the relationship between Total assets Lenow- | EBIT/TAI%) EPS Hall EPS the EPS of th firms? $ 29,000 750,000 S67,500 $ 750,000 $ 73,000 750,000 b-1. What is the EBIT/TA rate when the firm's have equal EPS? EBITITA rate b-2. What is the cost of debt? Cost of debt b-3. State the relationship between earnings per share and the level of EBIT. EPS is unaffected by financial leverage when the pre-tax return on assets (EBITITA the cost of debt. equals exceeds is less than c. If the cost of debt went up to 11 percent and all other factors remained equal, what would be the break-even level for EBIT? Break even level