Curriculum Guide · Courses
J.D. Course 114 (cross-listed) | 3 credit hours
This course examines the legal and financial economic aspects of corporate finance. It begins with an introduction to modern finance theory to provide tools for understanding valuation problems. Students will learn about discounted present value, valuation of risk, portfolio theory, capital asset pricing model, efficient markets hypothesis, and options theory. The course analyzes the rights and claims that attach to various securities, beginning with contractual rights of bondholders, preferred shareholders, and convertible security holders. It then examines the dividend and control rights of common stockholders, and fiduciary obligations of directors toward common stock holders. This course finishes with an examination of financial derivatives. Attention is paid throughout the course to the conflicts that arise between security holders, and the implications of the allocation of control rights among security holders for corporate governance and public policy.
Prerequisite: Corporations. Recommended: Prior or concurrent enrollment in Accounting for Lawyers or a similar accounting course.