The best way to solve such questions is to use Numbers. Let me show, how it works-Pick Numbers which are easy to work with.
Lets assume that the Price of share before increase = 100
Assume k= 50%
So the price of share after increase = 150
Lets assume that the EPS before increase = 100
Assume m= 20%
So the EPS after increase = 120
Ratio of Price/EPS before increase = 100/100= 1
Ratio of Price/EPS after increase = 150/120= 1.25 ( a 25% percent increase, which we want to calculate & is obscured in terms of k & m)
To find the correct option, plug the value of k & m in options
A. k m % = 50 x 20 = 1000 = No
B. (k – m) % = 50-20 = 30 = No
C. [100(k – m)] / (100 + k) % = 100 (50-20)/(100+50) = 3000/150 = 20 -No
D. [100(k – m)] / (100 + m) % = 100 (50-20)/(100+20) = 3000/120 = 25 -Bingo
E. [100(k – m)] / (100 + k + m) % - Don't need to check this one.
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