Introduction to Corporate Finance and Accounting for Lawyers

3 credits · Law School

This course provides an integrated introduction to corporate finance and accounting, tailored for legal professionals. It addresses the central question: how do firms finance their operations and what legal implications arise from various financing strategies? Core topics include foundational concepts of corporate accounting, financial statement analysis, the time value of money, valuation of bonds and stocks, market efficiency, and capital structure theories, including option pricing. Emphasis is placed on understanding the legal dimensions of a firm’s capital structure choices—from common and preferred stocks to debt and convertible instruments—and the legal rights each financial instrument entails. We will spend a significant portion of the class working through the contractual provisions and other legal rights associated with (i) a debt financing contract, and (ii) an equity investment through preferred stock. Corequisite/Prerequisite: LAW 7114 Corporations or LAW 7116 Corporations and Business Entities. [3]