BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

price per share & earnings per share

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
User avatar
Newbie | Next Rank: 10 Posts
Posts: 8
Joined: Thu Feb 25, 2010 7:16 am

price per share & earnings per share

by miachi » Wed Mar 03, 2010 2:45 am
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) %
Top
Source: — Problem Solving |
Newbie | Next Rank: 10 Posts
Posts: 8
Joined: Fri Oct 13, 2006 3:53 am

by vibhutirs » Wed Mar 03, 2010 3:14 am
Is answer A
Top
User avatar
Legendary Member
Posts: 1132
Joined: Mon Jul 20, 2009 3:38 am
Location: India
Thanked: 64 times
Followed by:6 members
GMAT Score:760

by harsh.champ » Wed Mar 03, 2010 4:36 am
miachi wrote: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) %
New price per share= p(1 + k/100)
Earning per share = e(1 + m/100)


A
It takes time and effort to explain, so if my comment helped you please press Thanks button :)



Just because something is hard doesn't mean you shouldn't try,it means you should just try harder.

"Keep Walking" - Johnny Walker :P
Top
Legendary Member
Posts: 610
Joined: Fri Jan 15, 2010 12:33 am
Thanked: 47 times
Followed by:2 members

by kstv » Wed Mar 03, 2010 6:57 am
IMO D
P = 100 E = 10
After increase P1 = 100 + k and E1 = 10+0.1m

Increase in ratio is P1/E1 - P/E
Top
Post new topic Post Reply
• Page 1 of 1