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Lenow's Drug Stores and Hall's Pharmaceuticals are compettors 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 compettors in the discount drug chain store business. The separate capital structures for Lenow and Hall are presented here. Lenow Hal Debt @ 10% Common stock, $10 $200,000 Debt @ 10% 580,000 Common stock, $10 par $580,000 290,000 5870,000 Total Common shares 58,000 Common shares 29.000 a. Complete the following table given eanings before interest and taxes of $33,000, $87,000, and $88,000. 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 e EPS of the two EBIT EBITITA EPS Hall EPS assets 870 870 firms? 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 b-3. State the relationship between earnings per share and the level of EBIT EPS is unaflected by financial leverage when the pre-tax return on assels cost of

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