Botox Facial Care had earnings after taxes of $298,000 in 20X1 with 200,000 shares of stock outstanding. The stock price was $58.80. In 20X2, earnings after taxes increased to $330,000 with the same 200,000 shares outstanding. The stock price was $70.00.

1. Compute earnings per share and the P/E ratio for 20X1. (The P/E ratio equals the stock price divided by earnings per share.)

Note: Do not round intermediate calculations. Round your final answers to 2 decimal places.

1. Compute earnings per share and the P/E ratio for 20X2.

Note: Do not round intermediate calculations. Round your final answers to 2 decimal places.

1. Why did the P/E ratio change?

Note: Do not round intemediate calculations. Input your answers as percents rounded to 2 decimal places. Omit '%' sign in your response.