Lenow Drug Stores and Hall Pharmaceuticals are competitors in the discount drug chain store business. The separate capital structures for Lenow and Hall are presented here Lenow Debt 10% Connon stock, $10 par Total Common shares Hall $ 80,000 Debt 10% 160,00 Con stock, sie par $240.000 Total 16,008 Couson shares 3160,00 80, $240,00 8. Bee o. Complete the following table given earnings before interest and taxes of $13,000, $24.000, and $53,000 assume the tax rate is 30 percent. (Negative amounts should be indicated by parentheses or o minus sign. Round your answers to 2 decimal places.) EBITATA Lenow EPS Hall EPS What is the relationship between the EPS of the two firmu? 5 5 $ EDIT Total Assets 13.000 240.000 24 000 $ 240.000 53.000 $ 240.000 b-1. What is the EBIT TA rote when the firm's hove equal EPS? b-1. What is the EBIT/TA rate when the firm's have equal EPS? EBITITA rate b-2. What is the cost of debt? Cost of debt b-3. State the relationship between earnings per share and the level of EBIT EPS infected by financial leverage when the pre- return on assets EBITITA) the cost of door
