Percentage cum ratio....

[kshankker]

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) %

[bomond]

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

[kshankker]

Iam not clear....

[GG04]

can someone explain this in a different way please?