Sterling Optical and Royal Optical both make glass frames and each is able to generate earnings before interest and taxes of $108,000. The separate capital structures for Sterling and Royal are shown here: a. Compute earnings per share for both firms. Assume a 30 percent tax rate. (Round your answers to 2 decimal places.) b. In part a, you should have gotton the same answer for both companies earnings per share. Assuming a P/E ratio of 20 for each company, what would its stock price be? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. Now as part of your analysis assume the P/E ratio would be 14 for the riskier company in terms of heavy debt utilization in the capital structure and 22 for the less risky company. What would the stock prices for the firms be under these assumptions? (Do not round intermediate calculations. Round your answer to 2 decimal places.)