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.

Hope this help many.

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