Corporate Finance

This course introduces the principles of financial economics as applied to corporate and securities law. Topics include valuation (including the time value of money, risk and return, and the capital asset pricing model), market efficiency (theories, evidence, and limits), event studies, option theory, capital structure, and the theory of the firm. In addition, the course considers legal rules governing corporate finance and capital structure decisions, including the issuance of securities, distributions to shareholders, and the rights of holders of common and preferred stock, debt, and convertible instruments. For potential transactional lawyers, the course is useful for understanding why financial transactions are structured as they are. For potential litigators, it is useful for understanding how finance theory informs modern corporate and securities law and the techniques used by expert witnesses in cases involving such law.