It is currently 17 Oct 2017, 15:45

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

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

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

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

Author Message
Intern
Joined: 08 Oct 2007
Posts: 33

Kudos [?]: 3 [0], given: 0

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

Show Tags

30 Nov 2008, 07:22
1
This post was
BOOKMARKED
This topic is locked. If you want to discuss this question please re-post it in the respective forum.

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) %

Kudos [?]: 3 [0], given: 0

Intern
Joined: 05 Oct 2008
Posts: 14

Kudos [?]: 16 [0], given: 0

Show Tags

30 Nov 2008, 08:52
ratio r = P/E

P'=P(100+k)%
E'=E(100+m)%

r' = P'/E' = r * (100+k) / (100+m)

ratio increase is: (r'-r)/r = (k-m) / (100+m) = 100(k-m) / (100+m) %

Kudos [?]: 16 [0], given: 0

Intern
Joined: 08 Oct 2007
Posts: 33

Kudos [?]: 3 [0], given: 0

Show Tags

30 Nov 2008, 09:07
thanks a lot. make sense

Kudos [?]: 3 [0], given: 0

Current Student
Joined: 28 Dec 2004
Posts: 3351

Kudos [?]: 319 [0], given: 2

Location: New York City
Schools: Wharton'11 HBS'12

Show Tags

30 Nov 2008, 11:08
i hate these type of questions. can anyone give me a pointer or 2 to some good resource to beef up my skills here?

Kudos [?]: 319 [0], given: 2

Re: stock X   [#permalink] 30 Nov 2008, 11:08
Display posts from previous: Sort by