Frantic Fast Foods had earnings after taxes of $420,000 in the year 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, earnings after taxes increased by 30 percent.
a. Compute earnings per share for the year 2012.
b. Compute earnings per share for the year 2013.