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Use the figure below to answer the following questions.
Figure 8.5.2
-Refer to Figure 8.5.2.Which one of the following best shows the effect of a rise in the market price of bonds?
Price/Earnings Ratio
A metric that measures the relationship between a company's stock price and its per-share earnings, providing insight into the market's valuation of the company.
Earnings Per Share
A company's profit divided by the number of outstanding shares of its common stock, indicating the company's profitability on a per-share basis.
Cash Coverage Ratio
A liquidity ratio that measures a company’s ability to pay off its debt with cash and cash equivalents, indicating financial health.
Operating Activities
The section of a company's cash flow statement that reveals the cash generated or used in the company’s primary business operations.
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