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# I wonder if these concepts will be tested on GMAT

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Director
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I wonder if these concepts will be tested on GMAT [#permalink]

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10 Jun 2005, 19:24
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I wonder if these concepts will be tested on GMAT
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SVP
Joined: 05 Apr 2005
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10 Jun 2005, 21:32
i think ther is nothing wrong with type of question. the basic concept is from finance.

MPS= p
EPS=e
% increase in mps = k
% increase in eps = m
MPS, after the increase= p(1+k)
EPS, after the increase = e(1+m)

ratio of mps to eps, before the increase = p/e
ratio of mps to eps, after the increase = p(1+k)/e(1+m)

% change in ration of mps to eps = (ratio before - ratio after)/ratio, before

= [p(1+k)/e(1+m) - p/e] = [(k-m)/(1+m)]x 100=100 (k-m)/(100+m)
SVP
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10 Jun 2005, 21:41
(1+k%)/(1+m%)-1=(k%-m%)/(1+m%)=(k-m)/(100+m)
Make it into percentage
D
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Director
Joined: 01 Feb 2003
Posts: 846
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Kudos [?]: 109 [0], given: 0

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10 Jun 2005, 21:55
I was trying to figure out the terminology!

Yes - the solution is simple!
SVP
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10 Jun 2005, 22:03
Vithal wrote:
I was trying to figure out the terminology!

terminology?????? pls be specific/explicit...
10 Jun 2005, 22:03
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