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Figure 10-3
-In Figure 10-3, the profit maximizing firm will operate at a level of
Shareholders' Equity
The residual interest in the assets of an enterprise after deducting liabilities, representing the ownership interest of shareholders.
Retained Earnings
The portion of net income that is kept by the company rather than distributed to its shareholders as dividends.
Contributed Surplus
The value of anything of value that is given to a company in exchange for shares, above the par value of the shares.
Net Income
The total profit of a company after all expenses, including taxes and interest, have been deducted from total revenue.
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