Last year the price per share of Stock X increased by k : Quant Question Archive [LOCKED]
Check GMAT Club App Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

It is currently 05 Dec 2016, 05:48
GMAT Club Tests

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

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

  post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
1 KUDOS received
Manager
Manager
avatar
Joined: 14 Jan 2006
Posts: 92
Schools: HKUST
Followers: 1

Kudos [?]: 29 [1] , given: 0

Last year the price per share of Stock X increased by k [#permalink]

Show Tags

New post 01 Oct 2008, 00:45
1
This post received
KUDOS
This topic is locked. If you want to discuss this question please re-post it in the respective forum.

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) %
Manager
Manager
avatar
Joined: 30 Sep 2008
Posts: 111
Followers: 1

Kudos [?]: 19 [0], given: 0

Re: GMAT SET 16 - 3 [#permalink]

Show Tags

New post 01 Oct 2008, 01:19
% increased = [(100+k)/(100+m) - 1] x 100 %

So the answer is D
Intern
Intern
avatar
Joined: 10 Sep 2008
Posts: 37
Followers: 1

Kudos [?]: 41 [0], given: 0

Re: GMAT SET 16 - 3 [#permalink]

Show Tags

New post 01 Oct 2008, 09:32
Hello. Can someone please write out how that answer was found? I have tried to compute it a couple times and come up with 100+K. Thank you
1 KUDOS received
Director
Director
User avatar
Joined: 27 Jun 2008
Posts: 546
WE 1: Investment Banking - 6yrs
Followers: 2

Kudos [?]: 60 [1] , given: 92

Re: GMAT SET 16 - 3 [#permalink]

Show Tags

New post 01 Oct 2008, 09:45
1
This post received
KUDOS
You can refer : 7-t70360
2 KUDOS received
Manager
Manager
avatar
Joined: 27 Aug 2008
Posts: 150
Followers: 0

Kudos [?]: 44 [2] , given: 0

Re: GMAT SET 16 - 3 [#permalink]

Show Tags

New post 01 Oct 2008, 10:15
2
This post received
KUDOS
lylya4 wrote:
% increased = [(100+k)/(100+m) - 1] x 100 %

So the answer is D

Let original price/share = p & earning/share = e.
Original Ratio = p/e

New price/share = p+(k/100)p = (100p+kp)/100
New earning/share = e+(m/100)e = (100e+me)/100
New ratio = (100p+kp)/(100e+me)

Increase in ratio: (100p+kp)/(100e+me)-(p/e)

% increase = [(100p+kp)/(100e+me)-(p/e)]/(p/e) * 100... increase/original*100
= [(100+k-100-m)/100+m]*100
= 100(k-m)/(100+m)
Answer is D.
Intern
Intern
avatar
Joined: 10 Sep 2008
Posts: 37
Followers: 1

Kudos [?]: 41 [0], given: 0

Re: GMAT SET 16 - 3 [#permalink]

Show Tags

New post 01 Oct 2008, 15:31
Thank you jatinrai.

I was doing it right but kept making the same a silly algebraic mistake in the second to last step. Plus, I can never read my handwriting. Thank you! :-D
Re: GMAT SET 16 - 3   [#permalink] 01 Oct 2008, 15:31
Display posts from previous: Sort by

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

  post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.