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 123 Common stock, 55 par Total Comon shares Sterling Royal $ 500,000 $220,000 140.000 380 000 $1,100,000 $1,100,000 88,000 175,000 a. Compute earnings per share for both firms. Assume a 25 percent tax rate. (Round your answers to 2 decimal placet.) tarnings per Share Sterling 99000 mayal $ b. in part, you should have reached the same answer for both companies' earnings pershare Assuming a PE 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 4. Now as part of your analysis, assume the PlE ratio would be 18 for the risker company in terms of heavy deot tization in the capital structure and 24 for the less my company. What would the shore orices for the two firme be under these assumptions? Note Although interest rates also would hely be different based on risk, we will hold them constant for ease of analysis. Do not round Intermediate calculations. Round your answers to 2 decimal places) Sterling