Answer (A) is correct . The only common ratios that use market price as a part of the calculation are the price-earnings ratio and the dividend yield. The dividend yield is computed by dividing the annual dividend by the current market price. Thus, an increase in market price will decrease the dividend yield.
Answer (B) is incorrect because It is based on book value and is not influenced by market price.
Answer (C) is incorrect because EPS equals income divided by the number of shares outstanding.
Answer (D) is incorrect because The dividend payout ratio equals the annual dividend divided by income.
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