16. C-mart, Inc. had earnings after taxes of $26,500,000 in the year 2015 with 100,000 shares outstanding. On January 1, 2016, the firm issued 25,000 new shares. Because the proceeds from these new shares financed investments that led to operating improvements, earnings after taxes increased by 50 percent.

a.Compute earnings per share for the year 2015.

b.Compute earnings per share for the year 2016.