Introduction to the principles of modern corporate finance. Topics include: the time value of money; the relation between risk and return; the workings and efficiency of capital markets; valuing perpetuities and annuities; valuing the securities that corporations use to finance their business activities (stock, bonds, and options); valuing businesses as a going concern; optimal capital structure and dividend policies; debt covenants and other lender protections; basic financial accounting; derivatives; and the application of these principles to selected areas of corporate and securities law.