Question: Pea Pod are presented below. a. Compule EPS for both firms (assume a 40 percent tax tate). (Round the final nnswers to 2 decimal places.)

Pea Pod are presented below. a. Compule EPS for both firms (assume a 40 percent tax tate). (Round the final nnswers to 2 decimal places.) tirs: b. Assuming a PiE rato of 36 for each firm, what would be each firmis shaie price? (Round your intermediate calculations and final onswers to 2 decimol places.? c. Assume the PiE ratio would be 31 for the riskier company in terms of heary debt utilization in Hie capital struchise and 42 for the less risky firm. What would the share pice now be for each firm? (Round your intermediate caiculations ond final answers to 2 decimal ploces.) a. Compute EPS fot both firms (assume a 40 percent tax rate). (Round the final answers to 2 decimel places.) b. Assuming a PiE ratio of 36 for each firm, what would be each firm's shate price? (Round your intermediate calculations and final answers to 2 decimol ploces.) c. Assume the PJE ratio would be 31 for the riskier company in terms of heavy debt utilization in the capital structure and 42 for the liess Aisky firm, What would the share price now be for each firm? (Round your intermediate calculotions and final answers to 2 decinsal places.)

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