LAW 7161 - Corporate Finance.

2 to 3 Credit Hours

Prerequisites: LAW 7101 or LAW 7470.
Description
This is an elective course. This course is designed to familiarize law students with the foundations and recent developments in the theory and application of corporate finance, with special attention to the important role that lawyers play in structuring corporate finance transactions. We will explore several topics, including: (i) how to value stocks, bonds, and projects, (ii) an introduction to academic finance theory (i.e., portfolio theory, the capital-asset pricing model, efficient capital markets hypothesis, behavioral finance) and its role in legal decisions, (iii) an introduction to financial accounting, (iv) the mechanics of capital structure, (v) capital budgeting and how to calculate a firm’s cost of capital, (vi) the rights of debtholders, (vii) the rights of preferred and common stockholders, and (if time permits) (viii) the causes and consequences of corporate mergers and acquisitions. We will also become familiar with certain standard terms of corporate contracts such as indentures, loan agreements, asset purchase agreements, and merger agreements. This course is intended to either follow, or be taken concurrently with, the Corporations course.