Stock/earnings

[Xbond]

Hi there,

How to resolve it in fast and simple way ?

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 D

[Xbond]

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) %

[regor60]

P2= (1+k/100)*P1 > divide k by 100 to express as decimal
E2=(1+m/100)*E1 > " m "

% change in P/E is { [(P2/E2) - (P1/E1)]/(P1/E1)} *100 > multiply by 100 to express decimal as percent

substitute in and answer is 100(k-m)/(100+m)

no other way