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What are the five steps by which economists arrive at a useful economic model?
Net Income
The total profit of a company after all expenses, including taxes, have been deducted from revenues.
Common Stock
A type of equity security that represents ownership in a corporation, granting holders voting rights and a share of the profits.
Earnings Per Share
A company's profit divided by the number of common shares outstanding, indicating the profitability on a per-share basis.
Stockholders' Equity
Represents the residual value of assets minus liabilities, indicating the ownership interest of shareholders in a company.
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