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

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Last year the price per share of Stock X increased by k [#permalink] New post 17 Sep 2008, 06:16
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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) %

Whats the simplest way to work on such problems? Plugin numbers?
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Re: PS - Q17 [#permalink] New post 17 Sep 2008, 07:26
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pawan203 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) %

Whats the simplest way to work on such problems? Plugin numbers?


S2=S1(1+K/100)
E2=E1(1+M/100)


(S2/E2)= (S1/E1)*((1+K/100)/(1+M/100))
= (S1/E1)*(1+((K+100)/(M+100))-1)
=(S1/E1)*(1+ (K-M)/(M+100) )


Answer D

100(k- m)] / (100 + m) %
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Re: PS - Q17 [#permalink] New post 17 Sep 2008, 15:23
(S2/E2)= (S1/E1)*((1+K/100)/(1+M/100))
= (S1/E1)*(1+((K+100)/(M+100))-1)
=(S1/E1)*(1+ (K-M)/(M+100) )


I do not understand how you went about it here (bold). Can you explain?

Thanks.

x2suresh wrote:
pawan203 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) %

Whats the simplest way to work on such problems? Plugin numbers?


S2=S1(1+K/100)
E2=E1(1+M/100)


(S2/E2)= (S1/E1)*((1+K/100)/(1+M/100))
= (S1/E1)*(1+((K+100)/(M+100))-1)
=(S1/E1)*(1+ (K-M)/(M+100) )


Answer D

100(k- m)] / (100 + m) %
Director
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Re: PS - Q17 [#permalink] New post 18 Sep 2008, 13:07
Can you please elaborate? woudln't plugin in numbers be easier?
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Re: PS - Q17 [#permalink] New post 18 Sep 2008, 13:26
assume original price per share is 100 and earnings is also 100.
assume k=20 and m=10.

100/100 + X = 120/110 where X is the increase.

solving this we get X to be 1/11.

putting same values in D,

[100(k – m)] / (100 + m) %

100(10)/110 we also get 1/11.

so D.

Is this correct way of doing guys?
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Re: PS - Q17 [#permalink] New post 18 Sep 2008, 18:36
jackychamp wrote:
assume original price per share is 100 and earnings is also 100.
assume k=20 and m=10.

100/100 + X = 120/110 where X is the increase.

solving this we get X to be 1/11.

putting same values in D,

[100(k – m)] / (100 + m) %

100(10)/110 we also get 1/11.

so D.

Is this correct way of doing guys?


any method which is fast and gives result is ok. UR method is also fine.
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Re: PS - Q17 [#permalink] New post 01 Oct 2008, 16:30
Actually It is % increase in S1/E1 = {(S1/E1)*((1+K/100)/(1+M/100))- (S1/E1)}/ (S1/E1)
NOw take (S1/E1) common and solve, u will get the answer

bigfernhead wrote:
(S2/E2)= (S1/E1)*((1+K/100)/(1+M/100))
= (S1/E1)*(1+((K+100)/(M+100))-1)
=(S1/E1)*(1+ (K-M)/(M+100) )


I do not understand how you went about it here (bold). Can you explain?

Thanks.

x2suresh wrote:
pawan203 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) %

Whats the simplest way to work on such problems? Plugin numbers?


S2=S1(1+K/100)
E2=E1(1+M/100)


(S2/E2)= (S1/E1)*((1+K/100)/(1+M/100))
= (S1/E1)*(1+((K+100)/(M+100))-1)
=(S1/E1)*(1+ (K-M)/(M+100) )


Answer D

100(k- m)] / (100 + m) %
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Re: PS - Q17 [#permalink] New post 01 Oct 2008, 21:31
pawan203 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) %

Whats the simplest way to work on such problems? Plugin numbers?

1+k/100 /1+m/100 *100 is the answer !!!!
IMO D
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Re: PS - Q17   [#permalink] 01 Oct 2008, 21:31
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