Botox Facial Care had earnings after taxes of $350,000 in 20X1 with 200,000 shares of stock outstanding. The stock price was $72.50. In 20X2, earnings after taxes increased to $420,000 with the same 200,000 shares outstanding. The stock price was $83.00.

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.)
   1. earnings per share _______
   2. P/E ratio ________ times

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.
   1. earnings per share _______
   2. P/E ratio ________ times

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

1. Why did the P/E ratio change?
   1. stock price (increased by/decreased by) ______ percent while EPS (increased by/decreased by) _____ percent

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