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by truplayer256 » Sun Jul 26, 2009 6:37 am
Price per share of Stock X=x

Earnings per share of Stock X=y

Ratio of price per share to earnings per share of Stock X=x/y

Last year:

Price per share of stock X= x(1+k/100)

Earnings per share of Stock X= y(1+m/100)

Ratio of price per share of price per share to earnings per share of Stock X= x/y*(1+k/100)/(1+m/100)

Ratio simplified: x/y*(100+k/100)/(100+m/100)

100's cancel

x/y*(100+k/100+m)

Percent increase formula:

(higher - lower)/lower*100 %

y/x*[(100+k)/(100+m)*x/y-x/y]*100=(100+k)/(100+m)-1*100 %

100+k-100-m/100+m*100 %

(k-m)*100/100+m %
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by gmat740 » Sun Jul 26, 2009 7:00 am
Thanks a lot
That helps.
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by arora007 » Sun Aug 01, 2010 11:39 am
This was a good problem.
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