Botox Facial Care had earnings after taxes of $370,000 in 20XX with 200,000 shares of stock outstanding. The share price was $31.50. In 20XY, earnings after taxes increased to $436,000 with the same 200,000 shares outstanding. The share price rose to $42.50. a. Compute earnings per share and the P/E ratio for 20XX. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Earnings per share P/E ratio $ Earnings per share P/E ratio b. Compute earnings per share and the P/E ratio for 20XY. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) 1.85 17.03 times $ 218 19.50 times c. Why did the P/E ratio change? (Do not round intermediate calculations. Input your answers as percents rounded to 2 decimal places.) The P/E ratio changed as the stock price increased by 3.42 percent while EPS increased by V 33 percent.

Please explain c - how to solve for the percentage increase of P/E ratio and EPS

Botox Facial Care had earnings after taxes of $370,000 in 20XX with 200,000 shares of stock outstanding. The share price was $31.50. In 20XY, earnings after taxes increased to $436,000 with the same 200,000 shares outstanding. The share price rose to $4250. a. Compute earnings per share and the P/E ratio for 20X. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) b. Compute earnings per share and the P/E ratio for 20XY, (Do not round intermediate colculations. Round your final answers to 2 decimal places.) c. Why did the P/E ratio change? (Do not round intermediate calculations. Input your answers as percents rounded to 2 decimal places.)