Problem $2-18($Algo$)$ Price$-$earnings ratio $[$LO$2-2]$

Botox Facial Care had earnings after taxes of $$368,000$ in $201$ with $200,000$ shares of stock outstanding. The stock price was

$$65\mathrm{.}80.$ In $202,$ earnings after taxes increased to $$406,000$ with the same $200,000$ shares outstanding. The stock price was $$73\mathrm{.}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.$)$

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

b$.$ Compute earnings per share and the P$/$E ratio for $202.$

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

c$.$ Why did the $\frac{P}{E}$ ratio change?

Note: Do not round intemediate calculations. Input your answers as percents rounded to $2$ decimal places. Omit $\text{'}\%\text{'}$ sign in your

response.