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The expectations theory and the segmented markets theory do not explain the facts very well,but they provide the groundwork for the most widely accepted theory of the term structure of interest rates,
Net Income
The total earnings of a company after subtracting all expenses, including taxes and operating costs, from its total revenues.
Operating Expenses
Costs associated with the day-to-day operations of a business, such as rent, utilities, and salaries, excluding direct production costs.
Revenues
The sum of revenue obtained through the sales of products or services that are central to a company's main activities.
Multiple-Step
An income statement format that separates operating revenues and expenses from nonoperating revenues, expenses, and gains and losses.
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