QUESTION 10 HW 1

Botox Facial Care had earnings after taxes of $346,000 in 20x1 with 200,000 shares of stock outstanding. The stock price was $43.80. In 20x2, earnings after taxes increased to $368,000 with the same 200,000 shares outstanding. The stock price was $55.00. 3. Compute earnings per share and the P/E ratio for 2OX1. (The P/E ratio equals the stock price divided by earnings per share.) (Do not round intermediate calculations. Round your nal answers to 2 decimal places.) Earnings per share $ 1.73 PIE ratio 25.32 b. Compute earnings per share and the P/E ratio for 20x2. {Do not round intermediate calculations. Round your nal answers to 2 decimal places.) c. Why did the PIE ratio change? (Do not round intemediate calculations. Input your answers as percents rounded to 2 decimal places.)