Question 3 (Marks 3) Salalah Shipping Company and Duqm Shipping Company are two companies which are equal in size. For both the companies the current Sales are 3000 Rials per year and current EBIT is estimated at 500 Rials per year, Total Assets are 3000 Salalah Shipping Company has a Debt Equity Ratio of 2, while Duqm Shipping Company has a Debt Equity Ratio of 0.5. Assume interest rate is 12%. Taxes are zero. Assume price per share is 10 Rials per share for both the companies If EBIT next year drops sharply to 250 Rials per year the shareholders EPS of which of these two companies will suffer most. Justify your answer using appropriate calculations. Draw a diagram to clearly showing the x-axis and y-axis