My analysis of the final exam is attached.  Let me know if you have any comments.  corp-fin-2016-w-analysis

I posted the writing assignment on D2L.  It is also attached below.  It must be turned in by Wednesday evening at 6:30 pm.  Do not put your name on it, only your student number.  Follow the instructions.   Do not email it to me.  You can give it to someone at the school who can put it in my box if you are not coming to class.

I have received several emails from students primarily requesting that I help answer the question.  That will not happen.

I cannot stress enough that you should focus on the question that is asked and use the facts that you are given to answer the question, as best you can.   I am not interested in how well you tell me about the rules you remember.   I am not impressed by how many issues you can “find.”  I am interested is seeing whether you can think like a lawyer.

The Writing Assignment is here (I think).  corps-writing-assignment-2016-one.

Next week we will review Rule 10b-5 and the related issue of Insider Trading.   Insider Trading is a court-made rule.  You cannot understand insider trading without reading the cases.  Two of the cases are criminal proceedings against the alleged inside trader.   Continue reading →

1.  The corporation is a corporation.  It issued stock.  It has a board of directors.  It has a President.  It is not a partnership!
2. You can answer the questions very nicely without quoting any cases or treatises.  If a case that we reviewed is on point, it would be useful to mention that.  This is not a research project.  This is an answer the question project.

This is class 9.  We will get through the materials on the syllabus for class 8.  We will review these cases.

Debaun v. First Western  952
Dodge v. Ford Motor  341
Matter of Caterpillar   503
TSC Indus v. Northway    513
Rauchman v. Mobil   540 Continue reading →

This week will we review and study Classes 6 and 7 and the following cases.

Wilderman   630
McQuade v. Stoneham  359
Ling v. Trinity   430
Debaun v. First Western  952
Dodge v. Ford Motor  341

When will we be going over past exams in class so that we can have an idea on how to format for the exam and zone in on the issues.

Answer:  All of my past exams are on D2L along with my analysis for each.  I also have past bar exams and analysis for each.  It’s a work in progress as I’m still getting to all of the bar exam questions.  I will begin going over past exams in class in another couple of weeks.

I have had something come up.  We will not have class tonight or tomorrow night.  Prof. Hayes

For tomorrow night we will review (and you will need to brief):

Gall v. Exxon 685
Nelson v. Anderson SUP
Marciano v. Nakash 605
Brehm v. Eisner 634 and 641
Sinclair Oil v. Levien, 650

I should have added in the last post about the assignment answers I have been getting – a basic rule of accounting.   The total of liabilities plus stockholders equity is always exactly equal to the assets.  If the company’s assets equals $1 million for example, the liabilities plus stockholders equity will also equal $1 million.    If you own a car worth $30,000 and you owe $10,000 on it, your equity is $20,000.

The relationship between debt and equity is a telltale sign of the financial health of the company.  The more the liabilities exceed the equity, the shakier the financial health is.  A company with $1 million in assets and $950,000 in debts is “highly leveraged.”  Its profits are going to go to pay the liabilities instead of to shareholders.  To the extent the liabilities are accruing interest, the profit is going to pay the interest rather than dividends.