Advanced Accounting & Finance for Lawyers

Risk and Return and the CAPM. Efficient Capital Markets Hypothesis. Capital Structure Policy. Cash Flow. Derivatives. Do you understand these concepts? Can you communicate them (effectively) to others? Do you believe you would be a more valued attorney to your clients if you could talk the talk and walk the walk of accounting and finance? Do you understand what happened at Enron, WorldCom or Tyco from an accounting perspective? Do you understand or can you explain the decline in the stock price of Krispy Kreme Doughnuts? The business of America is business. Understanding accounting and financial concepts is indispensable to an effective and successfull career. Those who understand—now more than ever—promise to thrive in their careers. Those who do not, risk being left behind.

Advanced Accounting & Finance for Lawyers with Edward S. Adams provides you with a practice-oriented overview of advanced accounting and financial concepts that every business lawyer should possess. Among other things, this course will teach you how to:

• calculate risk as a function of investment;
• quantify cash flow initially and during the life of a project;
• identify the legal and economic factors that reduce the agency costs of mergers and acquisitions; and
• utilize derivatives to lay off various business risks.

Adams’s background as a corporate lawyer, business owner, director, legal commentator, author and law professor all come into play in this compelling program. Well known as the presenter of MBA Concepts for Lawyers, Adams breaks new ground and provides invaluable insights that will make you a better and more effective advocate.

Program Outline & Schedule (3 hours)

[Part I: 90 Minutes]

Introduction to Corporate Finance

• Four Aspects to Corporate Finance
  - Investment
  - Expected Value
  - Timing
  - Risk
• Present Value
• Four Key Financial Concepts
  - Rate of Return Calculation
  - Present Value Formula
  - Future Value Formula
  - Perpetuity Formula

Advanced Topics in Corporate Finance

• Risk and Return and the CAPM
• Efficient Capital Markets Hypothesis
• Capital Structure Policy

Cash Flow Analysis

• Valuation: Discounted Cash Flow
• Quantifying Initial Cash Flow of Project
• Quantifying Cash Flow During Project Life
• Cash Flow Example

[15 minute break]

[Part II: 90 minutes]

Mergers and Acquisitions

• M & A Valuation
• Theory of the Firm
• Legal Factors that Reduce Agency Costs
• Economic Factors that Reduce Agency Costs
• Other Explanations for M & A Activity
• Valuation

Derivatives

• News & Highlights
• Definition & Types
• Uses
• Options Example
• Premium>Intrinsic Value Factors

[Adjourn (Or break for Master’s Roundtable)]