Earnings per share and financial leverage

$16.($LO$5-4)$ 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:

a$.$ Compute earnings per share if earnings before interest and taxes are $\backslash (\backslash$$ $20,000,\backslash$$ $30,000\backslash ),$ and $\backslash (\backslash$$ $120,000\backslash )($assume a $30$ percent tax rate$).$

b$.$ Explain the relationship between earnings per share and the level of EBIT.

c$.$ If the cost of debt went up to $12$ percent and all other factors remained equal, what would be the break$-$even level for EBIT?