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Dr. Orazzo is using an objective method of defining abnormality. However, this method will not tell her about the meanings of the deviations she obtained; nor does it tell her where to draw the line between normal and abnormal. The method of defining abnormality that Dr. Orazzo is using is
Net Income
The total revenue minus total expenses of a company, representing the profit or loss over a specified period.
Total Common Equity
The sum of a company's shareholders' equity, excluding preferred shares, represented by common stock, retained earnings, and other accumulated comprehensive income.
Cash Flow Per Share
A financial metric that represents the amount of cash generated by a company, per share, over a specific period.
Depreciation
The systematic allocation of the cost of a tangible asset over its useful life.
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