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Last year the price per share of Stock X increased by k

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Director
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Last year the price per share of Stock X increased by k [#permalink] New post 18 Mar 2006, 20:45
Last year the price per share of Stock X increased by k percent and the earnings per share
of Stock X increased by m percent, where k is greater than m. By what percent did the
ratio of price per share to earnings per share increase, in terms of k and m?
A. k/m %
B. (k-m) %
C. [100(k-m)]/(100+k) %
D. [100(k-m)]/(100+m) %
E. [100(k-m)]/(100+k+m) %
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Re: percent increase [#permalink] New post 18 Mar 2006, 20:58
p/e ratio before = p/e
p/e ratio after = [p (100+k)]/[e(100+x)]
increament = [{p (100+k)}/{e(100+x)} -p/e] 100
should come [100(k-m)]/(100+m)%.
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Re: percent increase [#permalink] New post 18 Mar 2006, 21:00
HIMALAYA wrote:
p/e ratio before = p/e
p/e ratio after = [p (100+k)]/[e(100+x)]
increament = [{p (100+k)}/{e(100+x)} -p/e] 100
should come [100(k-m)]/(100+m)%.


oh, i did it: http://www.gmatclub.com/phpbb/viewtopic ... t=earnings
Director
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 [#permalink] New post 18 Mar 2006, 22:24
thanks himalya, nice to see you here again
  [#permalink] 18 Mar 2006, 22:24
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