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 @ 10% Common stock, $10 par Total Common shares Hall $170,000 Debt @ 10% 340, 088 Common stock, $10 par $510,000 Total 34,000 Common shares $340,000 170,000 $518,000 17,000 a. Complete the following table given earnings before interest and taxes of $21000, $51,000, and $62,000. Assume the tax rate is 30 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? EBITITA % Lenow EPS Hall EPS $ $ $ EBIT 21,000 51,000 62,000 Total assets $ 510,000 $ 510,000 $ 510,000 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? ences 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 12 percent and all other factors remained equal, what would be the break-even level for EBIT? Break-even level