On successful completion of this course, students gain: - knowledge of the core corporate finance decisions which are essential for all businesses: 1) understand the tools that are used to value investment projects and companies (valuation); 2) understand the basic issues involved in how firms should raise funds for investments (financing). - Ability to evaluating how investment and financing decisions are related in practice, and integrating their knowledge of the legal aspects with a comprehensive financial approach. - Skills to autonomously understanding the process which firms go through in choosing between strategic options, such as undertaking a merger or engaging in restructuring. - Communication skills and appropriate financial terminology. - Learning skills and problem solving, developed through guided class discussion, case studies, and problem sets.
Course contents and objectives This course is designed to familiarize law students with the principles of investment banking and corporate finance. In this field, the distinction between lawyers and investment bankers has become blurred. Whether negotiating a debt restructuring, merger agreement, acquisition or divestiture, rendering a fairness opinion, preparing for an appraisal hearing, litigating derivative suits, issuing new securities, taking a firm private via a leveraged buy-out or public via an initial public offering, corporate lawyers and investment bankers work side-by-side, and lawyers without an appreciation of the basics of corporate finance are at a distinct disadvantage. Even students who do not plan to venture into the corporate world will benefit from this course. The financial principles covered are essential for lawyers intending to do estate or tax planning, litigate divorces, or write the compensation agreements for partnerships or closed corporations.
Course outline a) Valuation. Methods of Valuation: Net Present Value; Real Options; Cash Flow Analysis. Company and Asset Valuation. b) Financing. Debt: Senior and Mezzanine Debt; Private and Public Placements; Eurobond Market; Equity: Common Stocks; Preferred Shares; Option Rights; Initial Public Offerings. c) Valuation & Financing. Capital Structure and Investment Decisions; Mergers & Acquisitions; Leveraged Buy-Outs; Corporate Restructuring; Dividend Policy.
Materiale didattico e bibliografia
Brealey, R., S. Myers and F. Allen, 2013, Principles of Corporate Finance - Global Edition, ISBN: 9780078034763, McGraw-Hill, (11th edition). Research papers and financial press (Financial Times, Wall Street Journal, The Economist) available on Ariel. Access procedure is provided in class.