Question 25. As of HW 1

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. Lenow Hall Debt @ 995 $130,000 Debt @ 995 $260,000 Common stock, $10 par 260,000 Common stock, $10 par 130,000 Total $390,000 Total $390,000 Common shares 26,000 Common shares 13,000 a. Complete the following table given earnings before interest and taxes of $17,000, $35,100, and $58,000. 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 Toss-sssss \"m ssesssssswsr-nsss 17 000 $ 390 000 -E__ 35100 390 000 _E__ 53,000 390.000 -E__