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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. 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. (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 EBIT/TA % Lenow EPS Hall EPS the EPS of the two firms? $ 69 14,0 270,000 69 21,6 270,000 % 54,000 270,000

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