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

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Lenow's Drug Stores and Halls Pharmaceuticals are competitors in the discount drug chain store business, The separate capital structures for Lenow and Hal are presented here Debt a 8% 90,000 Debt 8% $180,000 Common stock, $10 par 180,000 Common stock, $10 par $270,000 Total $270,000 8,000 Common shares a. Complete the following table given eamings before interest and taxes of $14,000, $21.600, and $54.000. Assume the tax rate is 10 percent. (Negative amounts should be indicated b parentheses or a minus sign. Round your answers to 2 decimal places.) What is the relationship between Lenow EPs Hall EPS the EPS ofthe two firms? Total assets EBITITA (0.05) Lenow's EPS Halls EPS 14,000 270,000 5.18 0.34 800 0.72 0.72 Lenows EPS Hal's EPS 54.000 s 270,000 2000 s 230 s 396 LenowsEPS HarsEPs 1. What is the EBITITA rate when the frm's have equal EPs? b-2. What is the cost of debt? Cost of debt l Lenow's Drug Stores and Halls Pharmaceuticals are competitors in the discount drug chain store business, The separate capital structures for Lenow and Hal are presented here Debt a 8% 90,000 Debt 8% $180,000 Common stock, $10 par 180,000 Common stock, $10 par $270,000 Total $270,000 8,000 Common shares a. Complete the following table given eamings before interest and taxes of $14,000, $21.600, and $54.000. Assume the tax rate is 10 percent. (Negative amounts should be indicated b parentheses or a minus sign. Round your answers to 2 decimal places.) What is the relationship between Lenow EPs Hall EPS the EPS ofthe two firms? Total assets EBITITA (0.05) Lenow's EPS Halls EPS 14,000 270,000 5.18 0.34 800 0.72 0.72 Lenows EPS Hal's EPS 54.000 s 270,000 2000 s 230 s 396 LenowsEPS HarsEPs 1. What is the EBITITA rate when the frm's have equal EPs? b-2. What is the cost of debt? Cost of debt l

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