GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 20 Aug 2018, 21:14

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

Confirm Cancel

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

  post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
Manager
Manager
avatar
B
Joined: 14 Jan 2006
Posts: 88
Schools: HKUST
Last year the price per share of Stock X increased by k  [#permalink]

Show Tags

New post 01 Oct 2008, 01:45
1
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) %

--== Message from GMAT Club Team ==--

This is not a quality discussion. It has been retired.

If you would like to discuss this question please re-post it in the respective forum. Thank you!

To review the GMAT Club's Forums Posting Guidelines, please follow these links: Quantitative | Verbal Please note - we may remove posts that do not follow our posting guidelines. Thank you.
Manager
Manager
avatar
Joined: 30 Sep 2008
Posts: 111
Re: GMAT SET 16 - 3  [#permalink]

Show Tags

New post 01 Oct 2008, 02:19
% increased = [(100+k)/(100+m) - 1] x 100 %

So the answer is D
Intern
Intern
avatar
Joined: 10 Sep 2008
Posts: 36
Re: GMAT SET 16 - 3  [#permalink]

Show Tags

New post 01 Oct 2008, 10:32
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
Director
Director
User avatar
Joined: 27 Jun 2008
Posts: 505
WE 1: Investment Banking - 6yrs
Re: GMAT SET 16 - 3  [#permalink]

Show Tags

New post 01 Oct 2008, 10:45
1
You can refer : 7-t70360
Manager
Manager
avatar
Joined: 27 Aug 2008
Posts: 135
Re: GMAT SET 16 - 3  [#permalink]

Show Tags

New post 01 Oct 2008, 11:15
2
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: 36
Re: GMAT SET 16 - 3  [#permalink]

Show Tags

New post 01 Oct 2008, 16:31
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

--== Message from GMAT Club Team ==--

This is not a quality discussion. It has been retired.

If you would like to discuss this question please re-post it in the respective forum. Thank you!

To review the GMAT Club's Forums Posting Guidelines, please follow these links: Quantitative | Verbal Please note - we may remove posts that do not follow our posting guidelines. Thank you.
Re: GMAT SET 16 - 3 &nbs [#permalink] 01 Oct 2008, 16:31
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  

Moderator: chetan2u

Events & Promotions

PREV
NEXT


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

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

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®.