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Paragraph Styles Lenow, Drug Stores and Hall Pharmaceuticals are competitors in the discount drug chain store business. The separate capital structures for Lenow and Hall

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Paragraph Styles Lenow, Drug Stores and Hall Pharmaceuticals are competitors in the discount drug chain store business. The separate capital structures for Lenow and Hall are presented here. Longy Hall Debt # 91 $280, 000 Debt 8 91 $560, 000 Common stock, $10 Par 560,000 Common stock, $10 Par 280,000 Total $840,000 Total $840, 000 Common shares 56,000 Common shares 28, 000 a. Complete the following table given earnings before interest and taxes of $32,000, $75,600, and $82,000. Assume the tax rate is 20 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/TAX Lenow EPS Hall EPS the EPS of the two firms? 532 000 $840,000 0.04 Lenow EPS

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