Saved Sterling Optical and Royal Optical both make glass frames and each is able to generate earnings before interest and taxes of $168,000. The separate capital structures for Sterling and Royal are shown here: Sterling Royal Debt @ 12% $ 840, 000 Debt @ 12% $ 280, 000 Common stock, $5 par 560, 000 Common stock, $5 par 1, 120, 000 Total $1, 400, 000 Total $1, 400, 000 Common shares 112, 000 Common shares 224, 000 a. Compute earnings per share for both firms. Assume a 25 percent tax rate. (Round your answers to2 decimal places.) Earnings per Share Sterling Royal b. In part a, you should have gotten the same answer for both companies' earnings per share. Assuming a P/E ratio of 23 for each company, what would its stock price be? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Stock price