Case: Corning Inc.‚ Zero coupon convertible Bonds Cornhill needs funds to the order of $ 3.6 billion in cash to complete the acquisition of Pirelli. The company currently is planning to come up with an equity issue to raise $ 2.1375 billion at $ 71.25 per share. The remaining part of the fund requirements is furbished using zero coupon convertible debentures due in 2015‚ priced at $ 741.923 per $ 1‚000 principal amount. This offering price yields 2% p.a. compounded semi-annually. Corning is raising
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Mid Term – October 2014 Bond Pricing Qu 1: Time to Maturity Zero Coupon Rate Discount Factor 1 5% 2 6% 3 7% 4 8% 5 9% Give the formula for the discount factor in terms of the zero coupon rate. Use the formula to fill in the discount factors in the table above (you can write the formula or using excel calculate the numerical value). Assume that the government wishes to issue a new 5 year bond priced at 100 (called a par coupon bond as it is priced at par i.e. the price is the same as the face
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Corning Incorporated: A Network of Alliances Background Corning Incorporated has established a strong reputation in the specialty glass market. Corning Incorporated helped pioneer the initiative for businesses to incorporated research laboratories in their business operations; and has been a leader in technology-based research for some year. Corning’s initial focus was on the U.S. market but it consistently makes strides to becoming a more international company. One of the major strides Corning
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UVA-F-1339 Version 2.6 CORNING‚ INC.: ZERO COUPON CONVERTIBLE DEBENTURES DUE NOVEMBER 8‚ 2015 (A) On November 8‚ 2000‚ Corning announced that it would issue $2.7 billion in zero-coupon convertible debentures priced at $741.923 per $1‚000 principal amount. The initial public offering (IPO) price yielded 2% per annum to maturity‚ compounded semiannually. A summary of terms is given in Exhibit 1. Concurrent with the offering‚ Corning also conducted a separate public offering of 30 million shares of
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Assignment #1 Question 1 Consider the following data. The column marked n gives the price today of one dollar delivered in half-year n‚ i.e.‚ of a zero coupon bond which pays $1 in half-year n. In the next two columns there are the cash flows of two bonds‚ A and B. Essentially‚ bond A pays a 20% semi-annual coupon and bond B pays a 10% semi-annual coupon. Both bonds mature in 2.5 years‚ when each also pays its principal of 100. Assume semi-annual compounding. Half Year 1 2 3 4 5 n Bond
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DEBENTURES I. Sale/Transfer of Shares/Bonds/Debentures by NRIs to Residents In order to facilitate quick transfer of shares/bonds/debentures held by NRIs to residents‚ Reserve Bank has granted general exemptions for sale/transfer of shares/bonds/debentures through stock exchanges in India subject to fulfillment of certain conditions. Applications for sale/transfer of shares/bonds/debentures held by NRIs/OCBs by private arrangement i.e. other than through stock exchange should be made to Reserve
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In order for a company to borrow money the creditors must have security. The creditor wants security to protect its position in case of the insolvency of the company; equally the company wants to be able to borrow without having to give such security to the lender that would restrict its ability to trade. There are two types of security—fixed charges and floating charges. A fixed charge is a charge over a specific identifiable asset or property. A floating charge is a charge over a fluctuating
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Corning Inc.: Technology Strategy in 2003 Summary Corning Inc. got its start in the mid 19th century as a top producer of glass. Early on in the history of the company they had been able to achieve much success through their ability to innovate and come up with new and better uses for glass. Other companies whose products relied on innovation‚ like Thomas Edison and the railroad industry‚ used Corning as their go to supplier for high end glass products. Through a continued commitment to research
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Operations Management Instructor From: Craig Norcross Date: November 28‚ 2012 Subject: Corning Summary Corning was founded in 1851 and quickly became known as an innovator. One of Corning’s first orders came from Thomas Edison for his light bulbs. Over the next 20 years‚ Corning was able to produce glassware that would be used for railroad signals and specialty glassware used for semaphore lenses and lantern globes. Corning also was able to produce glassware that was used for medical supplies
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The following are the main difference between a debenture and a share: • A person having the debentures is called debenture holder whereas a person holding the shares is called shareholder. • Debenture holder is a creditor of the company and cannot take part in the management of the company while a shareholder is the owner of the company. It is the basic distinction between a debenture and a share • Debenture holder is a creditor of the company and cannot take part in the management
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