Last year the price per share of Stock Y increased by s percent and the earnings per share of Stock Y increased by t percent, where s is greater than t. By what percent did the ratio of price per share to earnings per share increase, in terms of s and t?
Choose one
A) [100(s – t)] / (100 + s + t) % B) [100(s – t)] / (100 + s) % C) 100*(s-t)/(100+t) % D) (s – t) % E) t/s %
Let P = the old price per share; E = the old earning per share. Thus P/E is the price to earning ratio before the increases   After the increase the new price is: P*(1+s/100) and the new earning is: E*(1 + t/100)   The new P/E is: (1+s/100)P/(1+t/100)E   The Percent of P/E increase = (new P/E - P/E)/(P/E). Subsititute new P/E to the equation we have:   [(1+s/100)/(1+t/100)*P/E - P/E]/(P/E)*100%. Simplifly the expression and you should get the answer to be:   100*(s-t)/(100+t) % Answer : 100*(s-t)/(100+t) %
<result>C</result>
Last year the price per share of Stock Y increased by s percent and the earnings per share of Stock Y increased by t percent, where s is greater than t. By what percent did the ratio of price per share to earnings per share increase, in terms of s and t?