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Describe the four steps in the process of legal interpretation.
Net Income
The total profit of a company after all expenses and taxes have been deducted from total revenue.
Return On Equity
This is a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how much profit a company generates with the money shareholders have invested.
Retained Earnings
Retained earnings represent the cumulative amount of net income a company retains for reinvestment in its operations rather than paying it out as dividends.
Stockholders' Equity
The residual interest in the assets of a corporation after deducting its liabilities, representing ownership interest.
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