6.

Botox Facial Care had earnings after taxes of $310,000 in 20x1 with 200,000 shares of stock outstanding. The stock price was $53.20. In 20X2, earnings after taxes increased to $392,000 with the same 200,000 shares outstanding. The stock price was $65.00. a. Compute earnings per share and the P/E ratio for 20X1. (The P/E ratio equals the stock price divided by earnings per share.) (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Answer is complete and correct. $ 1.55 Earnings per share P/E ratio 34.32 times b. Compute earnings per share and the P/E ratio for 20X2. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Answer is complete but not entirely correct. $ 1.98 X Earnings per share P/E ratio 25.77 times c. Why did the P/E ratio change? (Do not round intemediate calculations. Input your answers as percents rounded to 2 decimal places.) Answer is complete but not entirely correct. The stock price increased by 25.60 percent while EPS increased by 21.25 X percent