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Polynomial time refers to the class of computational problems for which the time required to solve the problem using an algorithm is a polynomial function of the size of the input. This is significant in computer science because problems solvable in Polynomial time are considered efficiently solvable or 'tractable'.
Relevant Degrees
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Face value refers to the nominal or dollar value of a financial instrument as stated by the issuer, such as the amount paid to a bondholder at maturity or the denomination of a coin or banknote. It is crucial for understanding the basic worth of a security, although the market value can differ significantly due to interest rates, credit risk, and market conditions.
Concept
Bond valuation is the process of determining the fair price or value of a bond, which involves calculating the present value of its future interest payments and the principal repayment at maturity. This valuation is crucial for investors to assess the potential return and risk associated with a bond investment in comparison to current market rates and other investment opportunities.
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Stock valuation is the process of determining the intrinsic value of a company's stock to assess whether it is overvalued or undervalued in the market. It involves analyzing financial statements, market conditions, and economic factors to make informed investment decisions.
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The coupon rate is the annual interest rate paid by bond issuers to bondholders, expressed as a percentage of the bond's face value. It determines the periodic interest payments received by the investor and remains fixed throughout the life of the bond, regardless of market interest rate fluctuations.
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Accounting principles are the standardized guidelines and rules that organizations follow to ensure their financial statements are consistent, reliable, and comparable across different periods and entities. These principles form the foundation of accounting practices, ensuring transparency and integrity in financial reporting.
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Market value refers to the estimated monetary worth of an asset or company as determined by the current market conditions, reflecting what buyers are willing to pay and sellers are willing to accept. It is a dynamic figure influenced by factors such as supply and demand, investor perceptions, and macroeconomic trends.
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Yield to Maturity (YTM) is the total return anticipated on a bond if it is held until it matures, accounting for all interest payments and the difference between the purchase price and par value. It is a crucial measure for investors, as it provides a comprehensive view of the bond’s profitability, assuming stable interest rates and no default risk.
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Preferred stock is a type of equity security that typically offers fixed dividends and has priority over common stock in the event of liquidation. It combines features of both equity and debt, providing investors with a more stable income while generally lacking voting rights in corporate governance.
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Authorized shares represent the maximum number of shares a corporation is legally allowed to issue, as specified in its corporate charter. This number can be changed through shareholder approval, but it sets a limit on potential equity dilution and impacts the company's capital structure decisions.
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Paid-in capital represents the total amount of cash or other assets that shareholders have contributed to a company in exchange for stock. It is an important component of a company's equity, distinct from retained earnings, and reflects the initial and additional funds raised through the issuance of stock above its par value.
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Additional Paid-In Capital (APIC) represents the amount investors are willing to pay above the par value of a company's stock during issuance. It reflects the premium investors place on the company's potential, and is a key metric in understanding shareholder equity and capital structure.
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