Sterling Optical and Royal Optical both make glass frames and each is able to generate earnings before interest and taxes

of $$97,600.$ The separate capital structures for Sterling and Royal are shown here:

a$.$ Compute earnings per share for both firms. Assume a $25$ percent tax rate.

Note: Round your answers to $2$ decimal places.

b$.$ In part a$,$ you should have gotten the same answer for both companies' earnings per share. Assuming a price$-$earnings

$(\frac{P}{E})$ ratio of $21$ for each company, what would its stock price be$?$

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.