7636. Corporate Finance

This is a course about quantitative techniques for valuing financial assets. Topics include valuation under certainty (discounting, future value), valuation under uncertainty (risk, risk- aversion, diversification), the Capital Asset Pricing Model (the market price of risk), The Efficient Capital Markets Hypothesis, Options and other derivatives, and, time permitting, the Modigliani-Miller Theorem and other matters of corporate financial structure. The class' primary goal is to make lawyers comfortable with modeling real world financial problems. The approach will be similar to a business school finance course, rather than one typically taught in law school. The class will be relatively light on reading, and there will be almost no reading of cases or statutes. Much of the class time will be devoted to solving financial problems using spreadsheets. No familiarity with finance, spreadsheets, or mathematics is assumed and students with previous background in quantitative finance are not eligible to enroll except on a pass/fail basis. Students are required to bring a laptop computer to class. Business Organizations (LAW7605) is not a required pre/co requisite, but it is strongly recommended.