Corporate Finance

2nd Edition

by Robert J. Rhee

Corporate Finance provides coverage in a more concrete and problem-based approach than other books on the market. Robert J. Rhee distinguishes this casebook from other fine books in the field in four ways: This book is interdisciplinary in nature, providing essential coverage of the basic concepts of accounting and finance needed for a business lawyer to understand the economics of the transaction; this book facilitates ease of learning and teaching, avoiding excerpting technically dense academic writings in finance and economics, which can intimidate students and teachers; it provides a basic understanding of financial instruments to prepare students for corporate practice, including many examples of actual financial contract terms and other transactional documents taken from various sources; this book takes a business and transactional perspective, including several case studies, which give students the opportunity to analyze legal problems in the context of business transactions.

New to the Second Edition:

• Updates to the accounting materials in Chapter 1, including a presentation of the financial statements of Google (Alphabet) and Facebook (Meta Platforms).
• New Delaware appraisal cases that deal with the use of the discounted cash flow method of valuation.
• Revisions to Chapter 7, Debt Instruments, in light of new cases and materials on indentures and covenants.
• Additional materials on venture capital investments.
• Revisions to Chapter 9, Derivatives, to focus on plain vanilla put and call options.
• A new Chapter 10 (Structured Finance) has been added to discuss structured finance transactions and instruments with a focus on asset securitizations and credit derivatives.

Professors and students will benefit from:

• Clear coverage of accounting, finance, valuation, and transactional economics along with good coverage of the major categories of financial instruments (common stock, preferred stock, debt, convertible securities, and derivatives).
• By the end of the course, students will have a basic understanding of the business aspects of corporate financing and the legal features of the majority classes of financial instruments used in corporate financing.
• Materials on accounting, finance, valuation, and transactional economics are presented in a clear, accessible way.
• Editing and annotation of the case opinions facilitate ease of reading and learning.
• Case studies of actual transactions at the end of some chapters, which illustrate the real-world application of the use of various securities.