Botox Facial Care had earnings after taxes of $280,000 in 2009 with 200,000 shares of stock outstanding. The stock price was $30.80. In 2010, earnings after taxes increased to $320,000 with the same 200,000 shares outstanding. The stock price was $40.00.
Give a general explanation of why the P/E ratio changed
The Stock price increased by ...... % while EPS only increased ........ %