Pulp Paper Company and Holt Paper Company are each able to generate EBIT of $232,000. The separate capital structures for Pulp and Holt are presented below. Pulp Holt Debt 8% Common stock $1,500,000 1,400,000 Debt @ BX Common stock $1,100,000 1,800,000 Total $2,900,000 Total $2,900,000 Common shares 280,000 Common shares 360,000 a. Compute EPS for both firms (assume a 40 percent tax rate), (Round the final answers to 2 decimal places.) Pulp 5 Holt EPS $ b. Assuming a P/E ratio of 39 for each firm, what would be each firm's share price? (Do not round intermediate calculations. Round the final answers to 2 decimal places. Pulp Share price Holt $ c. Assume the P/E ratio would be 36 for the riskier company in terms of heavy debt utilization in the capital structure and 47 for the less risky firm. What would the share price now be for each firm? (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Proy 28 of 35 : Next >