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

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Manager
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Last year the price per share of Stock X increased by k [#permalink] New post 12 Jul 2008, 07:07
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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)%

Please don't forget the detiled explanation. Very very important :wink: .
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Re: More Assistance required [#permalink] New post 12 Jul 2008, 07:34
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D

Let PPS be X and EPS be Y and the ratio1 x/y
after increase

PPS = x + xK/100
EPS= y+ ym/100

ratio2= (x + xK/100)/(y+ ym/100)

solve (ratio2-ratio1)/ratio1 as a percent change ( you can eliminate x/y from the numerator and denominator to get D)



TheBigCheese wrote:
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)%

Please don't forget the detiled explanation. Very very important :wink: .
Manager
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Joined: 27 Apr 2008
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Re: More Assistance required [#permalink] New post 19 Jul 2008, 09:45
I think there is a problem with the answers

I get (k-m)/(100+m) and not 100*(k-m)/(100+m)% time and again
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Re: More Assistance required [#permalink] New post 19 Jul 2008, 10:12
Re: More Assistance required   [#permalink] 19 Jul 2008, 10:12
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