Frantic Fast Foods had earnings after taxes of $420,000 in 2012 with 309,000 shares outstanding. On January 1, 2013, the firm issued 20,000 new shares. Because of the proceeds from these new shares and other operating improvements, earings after taxes increased by 30 percent.
a. Compute earings per share for the year 2012.
b. Compute earings per share for the year 2013.