Sterling Optical and Royal Optical both make glass frames and each is able to generate earnings before interest and taxes of $132.000. The separate capital structures for Sterling and Royal are shown here: Debt 12% Common stock, $5 par Total Connon shares Stening $ 600,000 440,000 $1,100,000 38.000 toyal $ 220,000 830,000 $1,100,000 176,000 a. Compute earnings per share for both firms. Assume a 25 percent tax rate. (Round your answers to 2 decimal places. Earnings per Share Sterling Royal $ $ b. In part a, you should have reached the same answer for both companies earnings per share. Assuming P/E ratio of 22 for each company, what would its share price be? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Share price c. Now as part of your analysis, assume the pre ratio would be 16 for the riskler company in terms of heavy debt utszation in the capital structure and 24 for the less risky company. What would the share prices for the two fimms be under these assumptions? (Note: Although interest rates also would likely be different based on risk, we will hold them constant for ease of analys)(Do nor round Intermediate calculations. Round your answers to 2 decimal places.) Share Stein Heyal