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 Debt @ 8% Common stock, $10 par Total Common shares $120,000 Debt @ 8% 240,000 Common stock, $10 par $360,000 Total 24,000 Common shares $ 240,000 120,000 $360,000 12,000 a. Complete the following table given earnings before interest and taxes of $16,000, $28,800, and $57.000. 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/TA % Lenow EPS Hall EPS Total assets 16.000 $ 360,000 28,8005 360,000 57.000 $ 360,000 b-1. What is the EBIT/TA rate when the firm's have equal EPS? EBIT/TA rate % b-2. What is the cost of debt? 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 (EBIT/TA) the cost of debt c. If the cost of debt went up to 10 percent and all other factors remained equal, what would be the break-even level for EBIT? Break-even level