Introduction to Corporate Finance

1 unit

JD/MBA students are not eligible to take this course since there is substantial overlap with Financial Management (B62-5203), a required MBA course. Also, other JDs who have taken Financial Management are not eligible to take this course, and students who take this course are not eligible to take Financial Management. This 1 unit Intersession course is designed to familiarize law students with the principles of corporate finance. In the world of corporate finance, the distinction between lawyers and investment bankers has become blurred. Whether negotiating a merger agreement, acquisition or divestiture, rendering a fairness opinion, preparing for an appraisal hearing, litigating a securities class action or derivative suits, issuing new securities, taking a firm private via an LBO or public via an IPO, corporate lawyers and investment bankers work side by side and lawyers with an appreciation of the basics of corporate finance are at a distinct advantage. In addition to the principles of finance, the course addresses the legal norms and economic constraints that affect a corporation's choice of capital structure. Topics include: the time value of money; the relation between risk and return; the workings and efficiency of the capital markets; behavioral finance; valuing corporate securities; optimal capital structure and dividend policies; basic financial accounting; and how these principals are applied in the practical practice of law. Students are expected to thoroughly read the course materials prior to the start of the class. Use of laptop computers in class is prohibited. Class attendance is mandatory. There will be a 3 day take-home final exam. 1 unit.