Corporate Finance: Cases and Materials (American Casebook Series)

This book is up-to-date review of corporate finance. The book contains sections on accounting basics, the time value of money, short and long term debt, preferred stock, dividends, stock subscriptions, merger financing, government securities, structured finance, derivative instruments, retirement plans and insurance. In assembling this casebook, the authors recognized that new instruments, such as derivatives and structured finance, must take their place alongside traditional areas of finance such as equity and fixed income instruments. The book, therefore, devotes several chapters to that "new" finance, as well as to classical financial issues involving dividends, debt and equity. The book includes coverage of the recent and increasing body of law on accounting issues and related concerns raised by Enron and other recent corporate scandals that resulted in passage of the Sarbanes-Oxley Act of 2002. That statute adopted a new regulatory structure for the accounting profession and imposed new obligations on lawyers involved in rendering advice on corporate finance for public companies. Preceding that legislation was the creation of a host of new and complex financial instruments that corporate lawyers helped design and implement, sometimes with disastrous results. This casebook examines many of those instruments and the problems they raised.