Lenow Drug Stores And Hall Pharmaceuticals Are Competitors In The Discount Drug Chain Store Business The Separate Capit 1 (56.89 KiB) Viewed 91 times
Lenow Drug Stores And Hall Pharmaceuticals Are Competitors In The Discount Drug Chain Store Business The Separate Capit 2 (24.45 KiB) Viewed 91 times
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
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