Question: First, explain the difference between these widely used measures of performance:
(a) dollar sales
(b) dollar sales growth
(c) net income
(d) net income growth
(e) stock price
(f) stock return
(g) cash flow.
Second, explain how it is possible that each of these variables can move in opposite directions (e.g. why is it possible for net income to rise during the same period that the stock return falls?)