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

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VP
Joined: 26 Apr 2004
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Last year the price per share of Stock X increased by k [#permalink]

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14 Jan 2005, 10:02
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Difficulty:

55% (hard)

Question Stats:

67% (02:13) correct 33% (02:11) wrong based on 218 sessions

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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) %

OPEN DISCUSSION OF THIS QUESTION IS HERE: last-year-the-price-per-share-of-stock-x-increased-by-k-89307.html
[Reveal] Spoiler: OA

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Director
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Location: SF Bay Area, USA
Re: Last year the price per share of Stock X increased by k [#permalink]

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14 Jan 2005, 15:21
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If old price per share = X, old Earnings per share = Y
=> Old ratio = X/Y
New price per share = X(100+k)/100, new Earnings per share = Y(100+m)/100
=>New ratio = X(100+K)/[(100+m)(Y)]

Increase in the ratios after simplifying comes to [100(k-m)]/(100+m) %

D)

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VP
Joined: 26 Apr 2004
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Kudos [?]: 858 [0], given: 0

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

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16 Jan 2005, 03:46
nocilis, thanks

The OA is D

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

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24 Nov 2014, 12:45
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Re: Last year the price per share of Stock X increased by k [#permalink]

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25 Nov 2014, 03:38
OPEN DISCUSSION OF THIS QUESTION IS HERE: last-year-the-price-per-share-of-stock-x-increased-by-k-89307.html
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Re: Last year the price per share of Stock X increased by k   [#permalink] 25 Nov 2014, 03:38
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