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Percentage cum ratio....

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by kshankker » Thu Aug 28, 2008 2:22 am
Q18:
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) %
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by bomond » Thu Aug 28, 2008 11:22 am
Let the per share of stock X be a. Then the increase by k percent means (a*k)/100

Let the per share earning be b. Then the increase be (b*m)/100

Initial ratio per share stock to per share earning was a/b

Now it is ((a*k)/100)/((b*m)/100). The percent change is (k/m)100

As it is given that k>m we conclude that change was increase
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But its OA is D.....

by kshankker » Thu Aug 28, 2008 6:13 pm
Iam not clear....
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by GG04 » Wed Sep 10, 2008 7:45 am
can someone explain this in a different way please?
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