Sterling Optical and Royal Optical both make glass frames and each is able to generate earnings before interest and taxes of $106.000. The separate capital structures for Sterling and Royal are shown here Sterling Royal Debt 104 $636,000 Debt 8 10% $ 212,000 Common stock, 55 puc 426,000 common stock, 55 par 848,000 51,060,000 Total 51,060,000 Common shares 84,800 common shares 169,600 Total a. Compute earnings per share for both firms. Assume a 30 percent tax rate (Round your answers to 2 decimal places.) Esinings 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 20 for each company, what would its stock price be? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Stok polce c. Now as part of your analysis, assume the PlE ratio would be 14 for the riskler company in terms of heavy debt utilization in the capital structure and 22 for the less risky company What would the stock prices for the two fiems be under these assumptions? (Note Although Interest rates also would likely be different based on risk we will hold them constant for ease of analysis) (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Stock Price Sterling Royal