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Lengthy Problem

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Lengthy Problem

by krishna kumar » Sun Jun 27, 2010 10:10 am
Hi,

I've been unsuccessful solving this problem under 2 mins.

The working out seems lengthy to me.


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) %

OA is E


Ideas anyone ?

Thanks


krishna kumar
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by gmatmachoman » Sun Jun 27, 2010 10:29 am
krishna kumar wrote:Hi,

I've been unsuccessful solving this problem under 2 mins.

The working out seems lengthy to me.


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) %

OA is E


Ideas anyone ?

Thanks


krishna kumar
Let the price per share of Stock X : a

earnings per share of Stock X : b

So after increase:


Increase in the price per share of Stock X : {a+ (K/100) * a}

Increase in earnings per share of Stock X : {b+(m/100)*b}

By what percent did the ratio of price per share to earnings per share increase, in terms of k and m?


{[{a+ (K/100) * a}/{b+(m/100)*b}] - (a/b)} /(a/b)

{a(1+k/100)/b(1+(m/100)) - (a/b)} / (a/b)

Upon solving very slowly all the steps:

u get {(k-m)/(100+m)}*100

SO it should be D
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by albatross86 » Mon Jun 28, 2010 1:52 am
Please see attached image. I agree with D.
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~Abhay

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by gmatmachoman » Mon Jun 28, 2010 2:46 am
Good wrk abhay!!
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