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FI N AN C I AL
MAN AGE M E N T
Raymond M. Brooks C RE C NCEPTS
FOURTH EDITION
AB OU T THE AUTHOR
RAYMOND M. BROOKS is Emeritus

P rofessor of Finance at Oregon State
University. He taught a variety of f inance
courses, including introduction to financial
management, investments, advanced
corporate finance, financial institutions,
financial planning, and risk management.
Previously, he taught at Washington
University in St. Louis; the University of
Southern Illinois, Edwardsville; and the
University of Missouri–Columbia. Profes-
sor Brooks authored a variety of articles
on topics from dividends to when-issued trading. He twice won best paper
awards at financial conferences.
vii
A01_BROO0417_04_SE_FM.indd 7 30/11/17 10:33 AM

B RI E F CONTENTS
PART 1 Fundamental Concepts and Basic Tools of Finance 1

CHAPTER 1 Financial Management 2
CHAPTER 2 Financial Statements 27
CHAPTER 3 The Time Value of Money (Part 1) 55
CHAPTER 4 The Time Value of Money (Part 2) 82
CHAPTER 5 Interest Rates 115
PART 2 Valuing Stocks and Bonds and Understanding Risk

and Return 145
CHAPTER 6 Bonds and Bond Valuation 146
CHAPTER 7 Stocks and Stock Valuation 181
CHAPTER 8 Risk and Return 213
PART 3 Capital Budgeting 257

CHAPTER 9 Capital Budgeting Decision Models 258
CHAPTER 10 Cash Flow Estimation 298
CHAPTER 11 The Cost of Capital 327
PART 4 Financial Planning and Evaluating Performance 357

CHAPTER 12 Forecasting and Short-Term Financial Planning 358
CHAPTER 13 Working Capital Management 387
CHAPTER 14 Financial Ratios and Firm Performance 425
PART 5 Other Selected Finance Topics 461

CHAPTER 15 Raising Capital 462
CHAPTER 16 Capital Structure 495
CHAPTER 17 Dividends, Dividend Policy, and Stock Splits 525
CHAPTER 18 International Financial Management 556
APPENDIX 1 Future Value Interest Factors 589

APPENDIX 2 Present Value Interest Factors 591
APPENDIX 3 Future Value Interest Factors of an Annuity 593
APPENDIX 4 Present Value Interest Factors of an Annuity 595
APPENDIX 5 Answers to Prepping for Exam Questions 597
GLOSSARY 607
INDEX 615
viii

C ONTENTS
The First Component: Cash Flow from

PART 1 Assets 35
The Second Component: Cash Flow to
Fundamental Concepts and Basic Creditors 37
Tools of Finance 1 The Third Component: Cash Flow to Owners 37
1
Putting It All Together: The Cash Flow
Financial Management 2 Identity 38
The Statement of Cash Flows 38
1.1 The Cycle of Money 3
Free Cash Flow 40
1.2 Overview of Finance Areas 4
2.3 Financial Performance Reporting 40
1.3 Financial Markets 5
Regulation Fair Disclosure 41
1.4 The Finance Manager and Financial Notes to the Financial Statements 41
Management 6
2.4 Financial Statements on the Internet 41
1.5 Objective of the Finance Manager 8
PUTTING FINANCE TO WORK Look Before You
Profit Maximization 8
Leap 44
1.6 Internal and External Players 10
1.7 The Legal Forms of Business 11 Key Terms 45
Sole Proprietorship 11 Questions 46
Partnership 12 Prepping for Exams 46
Corporations 13 Problems 48
Hybrid Corporations 13 Advanced Problems for Spreadsheet
Not-for-Profit Corporations 14 Application 51
1.8 The Financial Management Setting: MINI-CASE Hudson Valley Realty 53
The Agency Model 14
■ Summary Card at end of text
1.9 Corporate Governance and Business

Ethics 17
FINANCE FOLLIES The Financial Meltdown
3 The Time Value of Money (Part 1) 55
of 2008 19 3.1 Future Value and Compounding Interest 56

1.10 Why Study Finance? 20 The Single-Period Scenario 56
Employability 20 The Multiple-Period Scenario 56
Methods of Solving Future Value Problems 58
PUTTING FINANCE TO WORK Now Hiring 21
3.2 Present Value and Discounting 61
Key Terms 23 The Single-Period Scenario 62
Questions 23 The Multiple-Period Scenario 62
Prepping for Exams 24 The Use of Time Lines 64
MINI-CASE Richardses’ Tree Farm 3.3 One Equation and Four Variables 64
Grows Up 26 3.4 Applications of the Time Value of Money

■ Summary Card at end of text Equation 66
PUTTING FINANCE TO WORK Sports Agent 71
2 Financial Statements 27 3.5 Doubling of Money: The Rule of 72 72
2.1 Financial Statements 28 Key Terms 74
The Balance Sheet 29 Questions 74
The Income Statement 31 Prepping for Exams 74
Statement of Retained Earnings 34 Problems 76
2.2 Cash Flow Identity and the Statement of Advanced Problems for Spreadsheet
Cash Flows 34 Application 80
ix

C O N TENTS
MINI-CASE Richardses’ Tree Farm, Inc.: 5.4 Nominal and Real Interest Rates 127
The Continuing Saga 81 5.5 Risk-Free Rate and Premiums 129

■ Summary Card at end of text Maturity Premiums 131
5.6 Yield Curves 133
4 The Time Value of Money (Part 2) 82 5.7 A Brief History of Interest Rates and Inflation
in the United States 134
4.1 Future Value of Multiple Payment
Streams 83 Key Terms 137
4.2 Future Value of an Annuity Stream 84 Questions 138
Future Value of an Annuity: An Application 86 Prepping for Exams 138
4.3 Present Value of an Annuity 88 Problems 140
4.4 Annuity Due and Perpetuity 91 Advanced Problems for Spreadsheet
PUTTING FINANCE TO WORK Modeling the Application 143
Future with Actuarial Science 92 MINI-CASE Sweetening the Deal: Povero
Perpetuity 94 Construction Company 144
4.5 Three Loan Payment Methods 95
Interest and Principal at Maturity of Loan

(Discount Loan) 95 PART 2
Interest as You Go, Principal at Maturity of Loan
(Interest-Only Loan) 96 Valuing Stocks and Bonds and
Interest and Principal as You Go (Amortized Understanding Risk and Return 145
Loan) 96
4.6 Amortization Schedules 97
4.7 Waiting Time and Interest Rates for 6 Bonds and Bond Valuation 146
Annuities 99 6.1 Application of the Time Value of Money Tool:
4.8 Solving a Lottery Problem 101 Bond Pricing 147
4.9 Ten Important Points about the TVM Key Components of a Bond 147
Equation 104 Pricing a Bond in Steps 149
6.2 Semiannual Bonds and Zero-Coupon
Key Terms 104
Bonds 152
Questions 105
Pricing Bonds after Original Issue 154
Prepping for Exams 105
Zero-Coupon Bonds 156
Problems 107
Amortization of a Zero-Coupon Bond 157
Advanced Problems for Spreadsheet
Application 113
6.3 Yields and Coupon Rates 158
The First Interest Rate: Yield to Maturity 159
MINI-CASE Fitchminster Injection Molding,
The “Other” Interest Rate: Coupon Rate 160
Inc.: Rose Climbs High 114
Relationship of Yield to Maturity and Coupon

Rate 161
5 Interest Rates 115

6.4 Bond Ratings 162
6.5 Some Bond History and More Bond
5.1 How Financial Institutions Quote Interest Features 165
Rates: Annual and Periodic Interest Rates 116 6.6 U.S. Government Bonds 169
5.2 Effect of Compounding Periods on the Time Pricing a U.S. Government Note or Bond 169
Value of Money Equations 119 PUTTING FINANCE TO WORK Municipal
5.3 Consumer Loans and Amortization Manager 170
Schedules 123 Pricing a Treasury Bill 171
x

C ONTENTS
Key Terms 173 Advanced Problems for Spreadsheet

Questions 174 Application 211
Prepping for Exams 174 MINI-CASE Lawrence’s Legacy: Part 1 212
Problems 175
Application 178
MINI-CASE Bay Path Cranberry Products 180
8 Risk and Return 213
8.1 Returns 214

Dollar Profits and Percentage Returns 214
7 Stocks and Stock Valuation 181

Converting Holding Period Returns to Annual
Returns 215
Extrapolating Holding Period Returns 217
7.1 Characteristics of Common Stock 182
Ownership 182 8.2 Risk (Certainty and Uncertainty) 218
Claim on Assets and Cash Flow (Residual FINANCE FOLLIES “Dangerous to Your
Claim) 182 Wealth”: Is Investing Just Gambling? 218
Vote (Voice in Management) 183 8.3 Historical Returns 219
No Maturity Date 183 8.4 Standard Deviation as a Measure of Risk 223
Dividends and Their Tax Effect 183 Normal Distributions 225
Authorized, Issued, and Outstanding Shares 183 8.5 Returns in an Uncertain World (Expectations
Treasury Stock 184 and Probabilities) 227
Preemptive Rights 184 FINANCE FOLLIES “Scam of the Century”:
7.2 Stock Markets 184 Bernie Madoff and the $50 Billion
Primary Markets 185 Fraud 228
Secondary Markets: How Stocks Trade 186 Determining the Probabilities of All Potential
Bull Markets and Bear Markets 186 Outcomes 230
7.3 Stock Valuation 187 8.6 The Risk-and-Return Trade-Off 232
The Constant Dividend Model with an Infinite Investment Rules 233
Horizon 189 8.7 Diversification: Minimizing Risk or
The Constant Dividend Model with a Finite Uncertainty 234
Horizon 191 When Diversification Works 235
The Constant Growth Dividend Model with an Adding More Stocks to the Portfolio:
Infinite Horizon 193 Systematic and Unsystematic Risk 238
The Constant Growth Dividend Model with a 8.8 Beta: The Measure of Risk in a Well-
Finite Horizon 195 Diversified Portfolio 239
Nonconstant Growth Dividends 196 8.9 The Capital Asset Pricing Model and the
FINANCE FOLLIES Irrational Expectations: Security Market Line 240
Bulbs and Bubbles 197 The Capital Asset Pricing Model 241
7.4 Dividend Model Shortcomings 198 Application of the SML 243
7.5 Preferred Stock 201
Key Terms 245
7.6 Efficient Markets 203 Questions 245
Operational Efficiency 203 Prepping for Exams 246
Informational Efficiency 203 Problems 248
Key Terms 204 Advanced Problems for Spreadsheet
Questions 205 Application 254
Prepping for Exams 205 MINI-CASE Lawrence’s Legacy: Part 2 255
Problems 207
xi

C O N TENTS
Opportunity Costs 302

PART 3
Erosion Costs 302
Synergy Gains 304
Capital Budgeting 257
Working Capital 305
9 Capital Budgeting Decision Models 258

FINANCE FOLLIES Boston’s “Big Dig” Gets
Dug Under 307
9.1 Short-Term and Long-Term Decisions 259 10.3 Capital Spending and Depreciation 307
9.2 Payback Period and Discounted Payback Straight-Line Depreciation 308
Period 261 Modified Accelerated Cost Recovery System 309
Payback Period 261 10.4 Cash Flow and the Disposal of Capital
FINANCE FOLLIES IBM Exits the Consumer Equipment 311
Software Market: Misreading Future Cash 10.5 Projected Cash Flow for a New Product 312
Flows 261 Key Terms 317
Discounted Payback Period 263 Questions 317
9.3 Net Present Value 265 Prepping for Exams 318
Mutually Exclusive versus Independent Problems 319
Projects 267 Advanced Problems for Spreadsheet
Unequal Lives of Projects 269 Application 323
Net Present Value Example: Equation and MINI-CASE BioCom, Inc.: Part 2, Evaluating
Calculator Function 270 a New Product Line 325
9.4 Internal Rate of Return and Modified Internal
Rate of Return 272
Internal Rate of Return 272
PUTTING FINANCE TO WORK Marketing and
11 The Cost of Capital 327
Sales: Your Product = Your Customer’s

11.1 The Cost of Capital: A Starting Point 328
Capital Budgeting Decision 277 11.2 Components of the Weighted Average Cost
of Capital 331
Modified Internal Rate of Return 280
Debt Component 331
9.5 Profitability Index 283
Preferred Stock Component 333
9.6 Overview of Six Decision Models 284
Equity Component 333
Capital Budgeting Using a Spreadsheet 286
Retained Earnings 335
Key Terms 288 The Debt Component and Taxes 336
Questions 288 11.3 Weighting the Components: Book Value or
Prepping for Exams 288 Market Value? 336
Problems 290 Book Value 337
Advanced Problems for Spreadsheet Adjusted Weighted Average Cost of Capital 338
Application 296 Market Value 338
MINI-CASE BioCom, Inc.: Part 1 296 11.4 Using the Weighted Average Cost of Capital

■ Summary Card at end of text in a Budgeting Decision 340
The Weighted Average Cost of Capital for
10
Individual Projects 341
Cash Flow Estimation 298 11.5 Selecting Appropriate Betas for Projects 343
10.1 The Importance of Cash Flow 299 11.6 Constraints on Borrowing and Selecting
10.2 Estimating Cash Flow for Projects: Projects for the Portfolio 345
Incremental Cash Flow 301 Key Terms 347
Sunk Costs 301 Questions 347
xii

C ONTENTS
Prepping for Exams 347 Average Payment Cycle 392

Problems 350 Putting It All Together: The Cash Conversion
Advanced Problems for Spreadsheet Cycle 393
Application 354 13.2 Managing Accounts Receivable and Setting
MINI-CASE BioCom, Inc.: Part 3, A Fresh Look Credit Policy 394
at the WACC 355 Collecting Accounts Receivable 394

■ Summary Card at end of text Credit: A Two-Sided Coin 395
Qualifying for Credit 396
PART 4 Setting Payment Policy 398
Collecting Overdue Debt 401
Financial Planning and Evaluating 13.3 The Float 402
Performance 357 Speeding Up the Collection Float (Shortening
the Lag Time) 403
12 Forecasting and Short-Term Financial

Extending the Disbursement Float
(Lengthening the Lag Time) 404
Planning 358 13.4 Inventory Management: Carrying Costs and
12.1 Sources and Uses of Cash 360 Ordering Costs 404
ABC Inventory Management 405
12.2 Cash Budgeting and the Sales Forecast 361
Redundant Inventory Items 406
Cash Inflow from Sales 364
Economic Order Quantity 406
Other Cash Receipts 365
Just in Time 410
12.3 Cash Outflow from Production 366
12.4 The Cash Forecast: Short-Term Deficits 13.5 The Effect of Working Capital on Capital
Budgeting 411
and Short-Term Surpluses 367
Funding Cash Deficits 368
PUTTING FINANCE TO WORK Operations
Investing Cash Surpluses 370
Management 412
Inventories and Daily Operations 413
12.5 Planning with Pro Forma Financial
Statements 370 Key Terms 415
Pro Forma Income Statement 371 Questions 416
Pro Forma Balance Sheet 373 Prepping for Exams 416
PUTTING FINANCE TO WORK Information Problems 418
Technology 375 Advanced Problems for Spreadsheet
Application 421
Key Terms 377
MINI-CASE Cranston Dispensers, Inc.:
Questions 377
Part 1 422
Problems 379

Application 383 14 Financial Ratios and Firm
MINI-CASE Midwest Properties: Quarterly Performance 425
Forecasting 384
14.1 Financial Statements 426

Benchmarking 427
13 Working Capital Management 387

14.2 Financial Ratios 431
Short-Term Solvency: Liquidity Ratios 432
13.1 The Cash Conversion Cycle 388 Long-Term Solvency: Financial Leverage
Average Production Cycle 391 Ratios 434
Average Collection Cycle 391 Asset Management Ratios 435
xiii

C O N TENTS
Profitability Ratios 437 The Marketing Process: Road Show 479

Market Value Ratios 438 The Auction 479
DuPont Analysis 440 The Aftermarket: Dealer in the Shares 479
14.3 External Uses of Financial Statements and PUTTING FINANCE TO WORK Corporate
Industry Averages 441 Law 482
Cola Wars 442 15.6 Other Borrowing Options for a Mature
Industry Ratios 445 Business 482
FINANCE FOLLIES Cooking the Books at 15.7 The Final Phase: Closing the Business 485
Enron and WorldCom 446 Straight Liquidation: Chapter 7 485
Reorganization: Chapter 11 486
Key Terms 448
Questions 448 Key Terms 486
Prepping for Exams 448 Questions 487
Problems 450 Prepping for Exams 487
Advanced Problems for Spreadsheet Problems 489
Application 456 Advanced Problems for Spreadsheet
MINI-CASE Cranston Dispensers, Inc.: Application 492
Part 2 456 MINI-CASE AK Web Developers.com 493

PART 5 16 Capital Structure 495

16.1 Capital Markets: A Quick Review 496
Other Selected Finance Topics 461 16.2 Benefits of Debt 498
Earnings per Share as a Measure of the
15 Raising Capital 462 Benefits of Borrowing 499
16.3 Break-Even Earnings for Different Capital
15.1 The Business Life Cycle 463 Structures 500
15.2 Borrowing for a Start-Up and a Growing 16.4 Pecking Order 503
Business 463
Firms Prefer Internal Financing First 504
Personal Funds and Family Loans 464
Firms Choose to Issue the Cheapest Security
Commercial Bank Loans 464
First and Use Equity as a Last Resort 504
Commercial Bank Loans through the Small
Business Administration 464
16.5 Modigliani and Miller on Optimal Capital
Structure 506
Angel Financing and Venture Capital 465
Capital Structure in a World of No Taxes and No
15.3 Borrowing for a Stable and Mature Business: Bankruptcy 507
Taking Out Bank Loans 469
Capital Structure in a World of Corporate Taxes
Straight Loans 470 and No Bankruptcy 510
Discount Loans 470 Debt and the Tax Shield 511
Letters of Credit or Lines of Credit 471
16.6 The Static Theory of Capital Structure 514
Compensating Balance Loans 471
Bankruptcy 514
15.4 Borrowing for a Stable and Mature Business: Optimal Capital Structure 515
Selling Bonds 472
FINANCE FOLLIES Hedge Funds: Some Really
15.5 Borrowing for a Stable and Mature Business: Smart Guys Get into Big Trouble 515
Selling Stock 474
Initial Public Offerings and Underwriting 475 Key Terms 518
Registration, Prospectus, and Tombstone 477 Questions 518
xiv

C ONTENTS

Problems 520 18 International Financial
Advanced Problems for Spreadsheet Management 556
Application 523
18.1 Managing Multinational Operations 557
MINI-CASE General Energy Storage
Cultural Risk 557
Systems: How Much Debt and How Much
Business Risk 560
Equity? 524
Political Risk 560

FINANCE FOLLIES Rino International 561
17 Dividends, Dividend Policy, and Stock

18.2 Foreign Exchange 563
Purchasing Power Parity 563
Splits 525 Currency Exchange Rates 565
17.1 Cash Dividends 526 Cross Rates 566
Buying and Selling Stock 526 Arbitrage Opportunities 568
Declaring and Paying a Cash Dividend: Forward Rates 569
A Chronology 527 Using Forward Rates 571
Different Types of Dividends 529 Changing Spot Rates 573
17.2 Dividend Policy 531 18.3 Transaction, Operating, and Translation
Dividend Clienteles 531 Exposures 574
Dividend Policy Irrelevance 532 Transaction Exposure 574
Reasons Favoring a Low- or No-Dividend- Operating Exposure 574
Payout Policy 536 Translation Exposure 576
Reasons Favoring a High-Dividend-Payout 18.4 Foreign Investment Decisions 576
Policy 536
Key Terms 580
Optimal Dividend Policy 537
Questions 580
17.3 Selecting a Dividend Policy 537
Some Further Considerations in the Selection
Problems 582
of a Dividend Policy 540
17.4 Stock Dividends, Stock Splits, and Reverse Application 586
Splits 540
MINI-CASE Scholastic Travel Services,
Reasons for Stock Splits 541
Inc. 587
Reverse Splits 543

17.5 Specialized Dividend Plans 543
Stock Repurchase 543
Dividend Reinvestment Plans 546 Appendix 1 Future Value Interest Factors 589
Key Terms 548 Appendix 2 Present Value Interest Factors 591
Questions 548 Appendix 3 Future Value Interest Factors of an
Prepping for Exams 549 Annuity 593
Problems 550 Appendix 4 Present Value Interest Factors of an
Advanced Problems for Spreadsheet Annuity 595
Application 553 Appendix 5 Answers to Prepping for Exam
MINI-CASE East Coast Warehouse Questions 597
Club 554 Glossary 607

■ Summary Card at end of text Index 615
xv

PREFACE
New to This Edition

Many updates and enhancements are featured in this fourth edition of Financial
Management: Core Concepts, including the following key material:
■■ We have updated the material that was time-related. For example, the interest
rates now reflect the historically low levels of the twenty-first century.
■■ We have continued to strengthen Chapter 16 on helping the student have a
better understanding on valuing firms. We have added the distinction be-

tween the value of a firm as a whole and the value of the firm to the owner.
■■ We have used the helpful suggestions of reviewers to clarify topics, present
enhanced examples, and arrange the order of topic presentations.

■■ We have provided additional insight on ratio analysis in Chapter 14 by ex-
panding the horizon for analysis with data comparisons over an extended
time frame.
■■ The fourth edition MyLab Finance course includes an enhanced eText with
animated figures and author-created solutions videos for in-text examples.

■■ The chapter-ending Advanced Problems for Spreadsheet Application are
now offered in MyLab Finance as auto-graded Excel Projects. Using proven,

f ield-tested technology, auto-graded Excel Projects allow instructors to seam-
lessly integrate Microsoft Excel® content into their course without having to
manually grade spreadsheets. Students have the opportunity to practice im-
portant finance skills in Excel, helping them to master key concepts and gain
proficiency with the program.
We began with a simple concept. When a student takes an introductory
f inance class, he or she may encounter a wonderful instructor with great
teaching talent and insight. But outside of class, it is the book and the sup-
port materials with which the student forms a learning partnership. Therefore,
the book and support materials need to put the student front and center. They need to
present the information in such a way that it connects directly to the student’s
experiences. So our goal in this book is to introduce the core concepts of
finance in a way that reconnects the student to his or her personal financial
experiences, provides student-centered feedback in a timely and understand-
able fashion, and then uses such experiences as a springboard into the world
of corporate finance.
The introductory finance class is the first and last class in finance for the
vast majority of college students. The perspective of these students often dif-
fers from that of students majoring in finance. They need a book that demon-
strates why finance matters across disciplines and that builds from the basics
to more complex topics in an organic approach. Our purpose throughout the
presentation of topics has been to make the material as simple as possible, but
not overly simplified. It is this balance that we hope creates a solid foundation
for the fundamental concepts of finance for all students.
The student is at the heart of this book. Our hope is that we have made the
path easier and finance more transparent.
xvi

S O LVI NG TEACHING
AND LEARNI NG CHAL L E NGE S
The evolution of technical support for finance has been amazing. Students now
have advanced calculators and spreadsheet software that can provide solutions to
many of the basic financial problems. However, understanding finance is more
than just solving a financial problem with the aid of these technological tools.
These different tools are all interconnected, and students who can move seam-
lessly from one to another gain a better understanding of the basics behind the
answer. So the book presents three methods to solve many financial problems:
the equation approach, the calculator approach, and the spreadsheet approach. In
this way, students see that there are different roads to the same destination.
Designed for the nonfinance major, Financial Management: Core Concepts
structures a student-centric learning environment built around three major
3.4 • Applications of the Time Value of Money Equation 67
competencies:
Example 3.4 illustrates a future value problem3.4 that•atApplications of the
first looks like Time Value of Money Equation
a present 67
■■ Using the tools of finance value problem. It shows how important it is to understand where the unknown
Example
amount 3.4 illustrates
is in relation a future value problem that at first looks like a present
to time.
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amount is in relation to time. 3.4 • Applications of the Time Value of Money Equation 67
■■ Studying for success EXAMPLE 3.4
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Phrasing this question
be in 148another way,
years at an we
–148another way, we could ask, “What
could
annual ask, “What
interest rate ofwill
4%?”theRestated
value ofthis
$7,200,000
-148 will 0 the value 0of
way, we can more easily
0 $7,200,000
be in 148 years at an annual

view the problem Tas
interest rate
0–148 of 4%?”
a future value n =this
Restated
problem. 148 years
Away,
timewe can
line is more easilyTThelpful
particularly 148
0 in this
view the problem as a future
instance. We value problem.
can show A time line
the 148-year spanisfrom
particularly
T-148 tohelpful in this
T0 or from T0 to T148.
instance. We can show the 148-year T0 span from T tonT= 148
or years
from T to T . T148
-148 0 0 148
T–148 r = 4% growth rate T0
T–148 PV = $7,200,000 T0 FV ?
T0 n =4%
148 years rate T148
METHOD
T0 1 Using the r =
equation growthT148
PV = $7,200,000
n = 148 years FV ?
FV = PV
× 1 r)n =equation
(1 + the
Using $7,200,000 × (1.04)148
Method one is the equation approach: Equation is METHOD
PV = $7,200,000
=
r = 4% growth
n
r = 4% growth rate
rate
$7,200,000 × 313.8442 FV ?
= $2,389,278,156
FV = PV × (1 + r) = $7,200,000 × FV
PV = $7,200,000 ? 148
(1.04)
p resented and the problem is solved mathematically. METHOD 1 Using the equation
METHOD
METHOD 1 Using the2equation
Using the = TVM keys × 313.8442 = $2,389,278,156
$7,200,000
FV = PV × (1 + r)n = $7,200,000 × (1.04)148
FV = PV ×Input
(1 + r)n =
METHOD 2 148
Using the
$7,200,000 4.0×TVM (1.04)-7,200,000
keys
148 0 ?
= $7,200,000 × 313.8442 = $2,389,278,156
Key = $7,200,000
N I/Y× 313.8442 PV = $2,389,278,156 PMT FV
Input
METHOD 2 148 Using the 4.0TVM keys -7,200,000 0 ?
METHOD 2 Using
CPT the TVM keys 2,389,278,156
Method two is using a calculator with time value of Input
Key
Input
148METHOD
N
148
4.03 Using
I/Y
4.0
-7,200,000 0
PV
-7,200,000 0
?
PMT
? FV
a spreadsheet
money keys: The problem is solved using a financial Key N
CPT
Key
I/Y
N
PV
I/Y
PMT
PV PMT
FV
2,389,278,156
FV
B6 METHOD 3 Using a spreadsheet fx 5FV(B1,B2,B3,B4,B5)

calculator, explaining the key strokes. The answer is CPT
CPT
Use the future value function 2,389,278,156
2,389,278,156
to find the price of
B6 METHOD 3 Using a spreadsheet
displayed in red on the appropriate calculator key. METHOD 3 Using a spreadsheet
fx
Alaska if purchased
Use thefx future
5FV(B1,B2,B3,B4,B5)
today instead of 148 years ago.
B6 A Bvalue function to findCthe price of
5FV(B1,B2,B3,B4,B5) D E
B6 fx 5FV(B1,B2,B3,B4,B5) today instead of 148 years ago.
Alaska if purchased
1 Rate Use the future value function
0.04 to find the price of
Use theAfuture value function
Alaska B the
to find
if purchased of of 148Cyears ago.
priceinstead
today D E
2 Alaska if A
Nper purchased today instead of B 148 years148 ago. C D E
1 Rate 0.04
Method three is using a spreadsheet: For some A
31
2
Pmt
Rate
Nper
B C
0.04 0
148
D E
e xamples, an Excel solution is added. Basic spreadsheet1 Rate

42
3
Pv
Nper
Pmt
0.04
($ 7,200,000.00)
148
0
2 Nper 148
variables are explained as well as how to set up the 3 Pmt
53
4
Pmt
Type
Pv
00
0 ($ 7,200,000.00)
application. 4 Pv
64
5
5
Pv
Fv
Type
Type
($ 7,200,000.00)
($$2,389,278,156
7,200,000.00)
0
0
5 Type 6 Fv 0 $2,389,278,156
6 Fv $2,389,278,156
6 Fv $2,389,278,156
M03_BROO0417_04_SE_C03.indd 67
xvii 25/10/17 12:0
M03_BROO0417_04_SE_C03.indd 67 25/10/17 12:

M03_BROO0417_04_SE_C03.indd 67 25/10/17 12:05 PM
M03_BROO0417_04_SE_C03.indd 67 25/10/17 12:05 PM

90 Chapter 4 • The Time Value of Money (Part 2)
Appendix 4 provides PVIFAs for a set of payments (n) and interest or discount
rates (r).
The annuity equations for present value and future value are straight-
150 forward.
Chapter 6 • Bonds and BondJust as in Chapter 3, we have one equation and four variables, and
Valuation
Figure 6.2
to solve for any one of the four variables, we must know the other three.
How to price a Example 4.2 shows a present value problem solved with the three methods
1. Lay out the 2. Determine 3. Find the 4. Add the
Making Connections
bond. introduced
timingin Chapter 3. the appropriate
and present value present
amount of the discount rate
of the value of the
future cash for the cash
lump-sum lump-sum
flows promised. flows. principal and principal and
the annuity the present
MyLab Finance Video EXAMPLE 4.2 Making retirementstream golden of (present value
value of the
coupons. coupons to get
of an annuity) the price or
value of the
Problem Ben and Donna determine that upon retirement theybond.
will need to
withdraw $50,000 annually at the end of each year for the next thirty years. They
know that they can earn 4% each year on their investment. What is the present
value of We
theirtion
thiscan
annuity?
retirement
price aIn other
bond words,
using how much
the same methodswillfrom
Benearlier
and Donna need
chapters: theinequa- Early TVM Tools. The key concepts of finance
method,account
the TVM(at themethod,
keys beginning
andof their
the retirement)
spreadsheet to generate
method. thiswith
Let’s start
future
thecash flow?method.
equation are identified as “tools.” Students first need to
Solution In this problem, we assume that Ben and Donna need to have the learn how to use these tools of finance before
Method
present value 1: Using
of the the equation
thirty-year annuityLet’s now proceed
in their accountthrough the four
at the start main
of their
steps in even
retirement, pricing
the discussion.
a bond.
though Youwill
they may want
not maketo refer to Figure
the first 6.2 as you
withdrawal read through
of $50,000 until they can apply them to larger problems. The
the end of the first year of retirement. They will make thirty withdrawals from
Step 1 is to lay out the timing and amount of the future cash flow promised. The first
this account during retirement. The investment rate is 4%. It is the same as the
future cash flow we need to determine is the annual interest payment. Here it is
material drills down to basics quickly, developing
discount rate for the future payments of $50,000 that will come at the end of
150
the coupon rate of 6.5% times the par value of the bond. We will use $1,000 as the
eachpar
year for the
Chapter 6 • Bondsvalue
next
of this
and Bond
thirty years. The known variables are r = 4%, n = 30, and
bond:
Valuation
time value of money (TVM) concepts and inter-
PMT = $50,000. Solve for PV.
annual coupon or interest payment = $1,000 × 0.065 = $65.00 est rates early in the course.
Figure 6.2 How to price aMETHOD 1 Using the equation
The second1. Lay outcash
future the flow that2.weDetermine
need to determine is3.the Find the of the par4. Add the
payment
bond.
First, timingthe
value calculate and
or principal—in PVIFA
this value the nappropriate
= 30par
for$1,000
case, the and r =of4%:
value present
the bond—atvalue
the matu- present
rity date amount
of July 15,of2018.
the Recall from
discount rate4 that this of
Chapter the method of payingvalue of the
is one
future cash for the cash lump-sum lump-sum
back a loan: interest as you go 30
flows and principal repaid at maturity.
1 − 3promised.
1>(1 + 0.04) 4flows.1 − 0.308319 principal and principal and
We can set out the future cash=flow as shown in = Figure
the 6.3. Note that in the present
annuity
17.292033
0.04
the time line, T0 represents 0.04date of July
the original issue of and T1 is thevalue of the
15, 2008,
stream
first annual coupon payment date of July 15, 2009. Thecoupons. annual payments con-coupons to get
tinue multiply
Then for ten years, with T10payment
the annuity being thebylast factor: on July 15, 2018. This pointthe price or
payment
this
is a moment of recognition in which we can apply previously learned con- value of the
bond.
cepts: the coupon payments constitute an annuity stream, the same amount
PV = The
at regular intervals. $50,000 × 17.292033
principal or par value= of
$864,601.67
$1,000 also pays out at matu-
rity. Here we recognize another key concept: the final amount is a lump-sum
payment. So we now have the promised set of future cash flows for the Merrill
We can price a bond using the same methods from earlier chapters: the equa-
Lynch bond.
METHOD 2 Using the TVM keys
tion method, the TVM keys method, and the spreadsheet method. Let’s start with
Step 2 is to determine the appropriate discount rate for the cash flow. We will
Again, the
the calculatormethod.
must be in the END mode so that you treat the pay-
jump to theequation
answer now and use the yield of 5.30% from the bond data in
ments as an ordinary annuity. Set the calculator to the END mode. Then
Table 6.1. Later we will develop the concepts behind an appropriate discount
rate. Method 1: Using the equation Let’s now proceed through the four main
Mode = ENDwe now apply two of the time value of money equations to find
Forsteps in pricing a bond. You may want to refer to Figure 6.2 as you read through
step 3,
the present
Input thevalue of 30
the lump-sum principal
discussion. 4.0 and the annuity
? stream
−of50,000
coupons. Because
0
Step 1N is to lay outI/Y
the timing andPVamount of thePMT
future cash flow promised. The first
Figure 6.3 Future cash flow
Key
T0 future
T1 cashTflow weTneed to Tdetermine
. . . is the
T8 annual
T9interest
FV
Later Application and Visual Links. Students
payment. Here it is
T10
2 3 4
of the Merrill Lynch bond. CPT the coupon rate of 6.5% times864,601.67
soon begin to see just how powerful these tools
the par value of the bond. We will use $1,000 as the
par value of this bond:
$65 annual
$65 coupon$65 or interest
$65 ...
payment
$65 = $1,000
$65 × 0.065
$65 = $65.00
are. They learn to forge links between basic
$1,000
The second future cash flow that we need to determine is the payment of the par
principles and new applications.
value or principal—in this case, the $1,000 par value of the bond—at the matu- A tool icon alerts students when a
rity date of July 15, 2018. Recall from Chapter 4 that this is one method of paying
M04_BROO0417_04_SE_C04.indd 90 back a loan: interest as you go and principal repaid at maturity. new tool is introduced and when
25/10/17 3:40 PM
M06B_BROO0417_04_SE_C06.indd 150
We can set out the future cash flow as shown in Figure 6.3. Note that in
the time line, T0 represents the original issue date of July 15, 2008, and T1 is the
a tool can be applied in a new
08/08/17 6:59 PM
first annual coupon payment date of July 15, 2009. The annual payments con- situation.
tinue for ten years, with T10 being the last payment on July 15, 2018. This point
is a moment of recognition in which we can apply previously learned con-
cepts: the coupon payments constitute an annuity stream, the same amount
at regular intervals. The principal or par value of $1,000 also pays out at matu-
rity. Here we recognize another key concept: the final amount is a lump-sum
payment. So we now have the promised set of future cash flows for the Merrill
Lynch bond.
Step 2 is to determine the appropriate discount rate for the cash flow. We will
jump to the answer now and use the yield of 5.30% from the bond data in
Table 6.1. Later we will develop the concepts behind an appropriate discount
rate.
For step 3, we now apply two of the time value of money equations to find
the present value of the lump-sum principal and the annuity stream of coupons. Because
Figure 6.3 Future cash flow T0 T1 T2 T3 T4 ... T8 T9 T10

of the Merrill Lynch bond.
$65 $65 $65 $65 ... $65 $65 $65

$1,000
xviii
M06B_BROO0417_04_SE_C06.indd 150 08/08/17 6:59 PM

1.9 • Corporate Governance and Business Ethics 19
explanations as to why this implosion occurred and what we should do about

it. Here we will look at the broad outlines of the story, which is, in part, a lesson
of failed corporate governance. As you read these boxes throughout the book,
remember that there are many opinions about what went wrong in these vari-
ous scenarios and that no one definitive answer can explain it all for each one.
Instead, these features are designed to pique your curiosity about how things can
go wrong in the world of finance and explore what alternative viewpoints exist
about why they occurred and what we can do to correct them.
FINANCE FOLLIES
The Financial Meltdown of 2008

Between October 2007 and October 2008, financial continue lending through conventional loans to quali-
markets in the United States lost more than 40% of fied applicants or lower the qualifying standards with
their value, and several financial institutions collapsed new, unconventional loans and risk higher defaults.
or were swallowed up by healthier firms. This “perfect Because mortgage originators could eliminate most
storm” of mortgage defaults, a housing market col- risk by selling off the mortgages—which they repack-
lapse, a lack of appropriate regulation and oversight, aged and sold as securities—they naturally chose the
and a major international credit freeze led to the worst latter course.
Connections with the Real World. “Finance financial meltdown since the Great Depression of the
1930s.
With relaxed loan qualifications, red-hot demand
heated up the residential housing market. Many
Follies” capture some fascinating examples We can find the seeds of this financial debacle in
the housing market, but the soil in which they were
individuals found themselves in the middle of the
American dream that they thought they might never
of current and historical scandals and manias planted had been prepared for a long time. In the 1980s,
a new philosophy that the capital markets worked best
realize—a new home—but the new home often
brought with it an unconventional loan. The industry
and give the student context for the necessity of

when regulations were removed became the prevail- collectively called these unconventional loans “sub-
ing paradigm. Over the next twenty years, a slow and prime” loans because the initial monthly payment on
deliberate dismantling of regulations surrounding the the loan in the first few years was well below that of
studying finance. financial markets took place. The central idea behind a conventional mortgage loan. The interest rate on
these deregulation efforts was that government is the subsequent payments, however, would increase well
problem rather than the solution and that if we remove above that of a standard loan. So a new homeowner
the government from the market, free competition will might enjoy relatively low mortgage payments in the
efficiently allocate resources for a stronger economy. first couple of years only to face a large increase when
A key catalyst for the meltdown was the disman- the financial institution reset the interest rate. In many
tling of the Glass-Steagall Act (officially called the of these loans, the cost jumped by more than $500 per
Banking Act of 1933). In 1999, the Gramm-Leach- month.
Bliley Act overturned segments of Glass-Steagall that When the loan payments jumped, many mortgage
prevented investment banks from competing with holders could no longer afford to stay in their homes.
commercial banks in areas like mortgage lending. The default rate rose to over 20% on these loans, which
Later the SEC would relax requirements on investment is much higher than the typical 1% to 3% default rate on
banks regarding the amount of borrowing in which conventional loans. Normally, the bank would simply
they could engage, and the race was on to sell more and repossess the home, sell it, and recover the loan. But
more mortgages. with a glut of houses on the market, the housing mar-
Historically, commercial banks financed home ket collapsed, and prices fell. The banks could not sell
Studying for Success

mortgages with funds from their depositors—a limited these houses at any price near the value of the loan.
supply of money. Banks rationed credit to customers In addition, knowing that the potential for default
CHAPTER 3
with higher incomes and solid credit histories. Most
individuals or couples who could qualify for a standard
was higher on these subprime loans, many banks par-
ticipated in so-called collateral debt contracts, which
174 Chapter 6 • Bondsmortgage
and Bond Valuation
could get a conventional loan to buy a house, were designed as insurance against falling housing
and defaults were low. With new competition and prices and mortgage defaults. These contracts eventu-
The Time Value of Money (Part 1)
looser regulations, mortgage originators faced a choice: ally wound up nearly worthless as insurance against
QUESTIONS Continued
AT A GLANCE
For the Student on the Go. Tear-out Summary Today
1. What is a bond? What determines the price of this financial asset?
Future date (n)
Cards for every chapter provide instantaneous 2. What is the primary difference between an annual bond and a semiannual
bond? What changes do you need to make in finding the price of a semian-
mini-reviews. In addition to summarizing the main PV 19
M01B_BROO0417_04_SE_C01.indd nualpresent
bond versus
value an annual
3 (1 + growth bond?
rate)n = FV 29/07/17 1:45 PM
points of the chapter, these portable study aids 3. When we talk about the yield of a bond, we usually mean the yield to matu-
rity of the bond. Why?
include mathematical notation, calculator keys,
PV = 4. Does a zero-coupon bond pay FV interest?
future value
and key equations, all great to read over right (1 + discount rate)n
5. If a zero-coupon bond does not pay coupons each year, why buy it?
before an exam! 6. How does the potential for default of a bond affect the yield of the bond?
LO1 Calculate future values and understand compounding.
7.isWhy
Future value are
the value some
of an asset atbonds
a specificsold attime
point in a premium,
to the futuresome at parvalues
point. Future value,
grow and some
faster and fasterat a to
due
in the future that is equivalent in value to a specific amount interest earning interest, a phenomenon called compounding
today. There isdiscount?
a direct relationship between the future value of interest.
8. How does collateral impact the price of a bond?
of an asset and the asset’s present value, growth rate, and time
9. What role do Moody’s, Standard & Poor’s, and Fitch’s bond ratings play in
LO2 Calculate present values and understand discounting.
Present value isthe pricing
the value oftomorrow’s
today of a bond?cash flow. You dollars by discounting the future value back to the present.
can determine the equivalent value of a future value in today’s
10. What must happen for us to call a bond a “fallen angel”?
LO3 Calculate implied interest rates and waiting time from the time value of money
equation.
PREPPING FOR EXAMS
The time value of money equation is robust in that it can be
arranged to find each of the four different variables (future
To find the interest rate, you need the present value, the future
value, and the number of periods. To find the waiting time,
For Students with Test Anxieties. “Prepping value, present value, waiting time or time to maturity, and
1.and
interest rate) Five
thusyears
answer ago
a seriesThompson Tarps,
of different questions.
you need the present value, the future value, and the interest
Inc.
rate. issued twenty-five-year 10% annual
for Exams” is designed for those students who coupon bonds with a $1,000 face value. Since then, interest rates in general
LO4 Apply therisen,
have time value of money
and the equation
yield to using
maturity on equation, calculator,
the Thompson Tarpsandbonds
spreadsheet.
is now
worry about how well they will do on the finance There are four ways to find solutions to time value of money
12%. Given this information, whatare isproblems with tables due to rounding and limited values
the price today for a Thompson Tarps
problems, using the different formats of the equation, TVM for combinations of interest rate and time.
exam. To build confidence and expose students bond?
keys on a calculator, a spreadsheet function, or tables. There
a. $843.14
to the types of problems they will see on some LO5 Explain the Rule of 72, a simple estimation of doubling values.
b. $850.61
exams, multiple-choice questions at the end of The Rule of 72 allows you to determine how long it takes to
c. $1,181.54
double your money at a specific interest rate. It is a simple
approximation method in which 72 is divided by the interest
rate to find the number of years it takes to double your money.
d. $1,170.27
each chapter are pulled directly from the test
2. Endicott Enterprises, Inc. has issued thirty-year semiannual coupon
bank. Answers are printed in the back of the book bonds with a face value of $1,000. If the annual coupon rate is 14% and
in Appendix 5. the current yield to maturity is 8%, what is the firm’s current price per
bond?
a. $578.82 xix
b. $579.84
c. $1,675.47
d. $1,678.70
3. Benson Biometrics, Inc. has outstanding $1,000 face value 8% coupon bonds
that make semiannual payments and have fourteen years remaining to matu-17/11/17 1:59 pm
M03C_BROO0417_04_SE_C03SUM.indd 5
M03C_BROO0417_04_SE_C03SUM.indd 5
rity. If the current price for these bonds is $1,118.74, what is the annualized 28/11/17 10:27 AM
yield to maturity?
a. 6.68%
178 Chapter 6 • Bonds and Bond Valuation
Treasury notes and bonds. For Problems 19 through 23, use the information in
the following table.
Today Is February 15, 2008
Key Terms 173
Issue Coupon Maturity Current
Type Date Price Rate Date YTM Yield Rating
Then, using the simple interest approach, we annualize the result:
Note Feb 2000 —
Problems 6.50% 175
2-15-2010 3.952% 6.199% AAA
365
BEY = 0.002034129 × = 0.026516328 or ≈ 2.65% Bond Aug 2005 100.00 4.25% 8-15-2018 — 4.250% AAA
28 similar bonds is 7.5%. What is the expected price of this bond using the semi-
annual convention? Bond Aug 2003 — 7.25% 8-15-2023 4.830% 5.745% AAA
Another way to find the BEY is to use the formula
a. $25.19 Bond Feb 1995 126.19 8.50% 2-15-2015 — 6.736% AAA
365 × discount yield b. $250.19
BEY = c. $750.00
360 -days to maturity × discount yield
d. $1,000.00 19. What is the price in dollars of the February 2000 Treasury note if its par value
is $100,000? Verify the current yield of this note.
365 × 0.0261 5. From 1980 to 2013, the default risk premium differential between Aaa-rated
= = 0.026516328 ≈bonds
2.65% 6.5 has averaged between
and Aa-rated bonds 20.. What is the yield to maturity of the August 2005 Treasury bond? Compare the
360 − 28 × 0.0261 yield to maturity and the current yield. How do you explain this relationship?
a. 5 and 10 basis points
b. 11inand
We have another name for the BEY, one we have met earlier
the annual percentage rate (APR).
the23text.
basisItpoints
is
c. 24 and 35 basis points For the Student Who Wants
21. What is the price of the August 2003 Treasury bond (assume a $100,000 par
value) with the yield to maturity from the table? Verify the current yield.
d. 36 and 50 basis points
Why pay so much attention to the Treasury bill? The yield on the Treasury
6. Which of the following
Practice. The book features ap-
Why is the current yield higher than the yield to maturity?
bill is a nominal risk-free rate. The U.S. government guarantees it. Its default pre- bond types may the issuer buy back before
22.maturity?
What is the yield to maturity of the February 1995 Treasury bond based on
a. Callable
mium is essentially zero, and we determine its interest at purchase as abond
discount proximately 400 end-of-chapter prob-
the price in the table? Verify the current yield. Why is the current yield higher
bond. Thus, we know at purchase the guaranteed or risk-freeb.return
Putableforbond
buying a than the yield to maturity?
c. Convertible bond
Treasury bill. In future chapters, when we need a risk-free rate, we will often use lems and 180 conceptual questions.
23. What pattern do you see in the yield to maturity of these Treasury notes and
d. Zero-coupon bond
the yield on a Treasury bill.
7. Bonds that pay interest tied to a company’s earnings are
bonds?
Advanced spreadsheet problems
Treasury bills. For Problems 24 through 28, use the information in the following
table. A face value appear
of $10,000 isat theforend
theseof most bills.chapters
bonds.
a. income assumed Treasury
To review this chapter, see the Summary Card at theb.end of the text.
exotic
c. floating-rate
for
Maturity more flexibility
Days to Maturity in assigning
Bank Discount prob-
d. variable earnings
lems for individuals or teams and are
Mar 30 28 1.20
8. The U.S. Treasury bill is currently selling at a discount basis of 4.25%. The
174 Chapter 6 • Bonds and Bond Valuation
KEY TERMS par value of the bill is $100,000, and it will mature in ninety days. What is the also offered59 in the fourth
Apr 30 2.00
edition as
price of this Treasury bill? Jun 30 120 2.45
basis point, p. 163 QUESTIONS junk bond, p. 162a. $95,750.00 auto-graded
Aug 30 181
Excel Projects
?
in MyLab
maturity date, p.b.147
$98,937.50
bearer bond, p. 165
bond, p. 147
1. What is a bond? What determines the price of this financial asset?
c. $98,952.05
mortgaged security, p. 166
Finance.
2. What is the primary difference d. $99,952.78
between 24. What is the price for the March 30 Treasury bill?
bond equivalent yield (BEY), municipal bond (muni), p.an annual bond and a semiannual
169
p. 172 bond? What changes do p.
par value, you
147 need to make in finding the price of a semian- 25. What is the price for the April 30 Treasury bill?
callable bond, p. 167 nual bond versuspar an annual
value bond, bond?
p. 161 26. What is theThesepriceproblems
for theare
June 30 Treasury bill?
3. When we talk about the
PROBLEMS
yield of a bond, we usually mean the yield to matu- in MyLab Finance.
collateral, p. 166 premium bond, p. 161 27. Determine available
the bank discount rate of the August 30 Treasury bill if it is cur-
convertible bond, p. 168 rity of the bond. Why?
prime rate, p.Bond
169prices. For Problems 1 through 4, use the information in the following table.
rently selling for $9,841.625. What is the bond equivalent yield?
corpus, p. 165 protective
4. Does a zero-coupon bond covenant, p. 166
pay interest? 28. What are the bond equivalent yields of the March 30, April 30, and June 30
Coupon Years to Yield to
coupon, p. 147 putable bond, p. 168
5. If a zero-coupon bond does not pay coupons each year, why buy it?
Par Value Rate Maturity Maturity Price Treasury bills?
coupon rate, p. 147 security of a bond, p. 166
current yield, p. 148 6. How does the senior
potential forp.default
debt, 166 of a bond affect the yield of the bond?
$1,000.00 8% 10 6% ?
debentures, p. 166 7. Why are somesinking

bonds sold
fund,atp.a 166
premium, some at par6%
$1,000.00 value, and some
10 Theseat a problems
8% ?
deed of trust, p. 166 discount? state bond, p. 169 $5,000.00 9% available20in MyLab Finance.
7%
are
ADVANCED
?
PROBLEMS FOR SPREADSHEET APPLICATION
discount bond, p. 161 STRIPS,
8. How does collateral p. 156the price$5,000.00
impact of a bond? 12% 30 5% ? 1. Bond ladder. Mathew and Anna are setting up a retirement payout account
exotic bond, p. 169 Treasury Standard
9. What role do Moody’s, bill, p. 169& Poor’s, and Fitch’s bond ratings play in for the next twenty years. They have decided to buy government bonds that
fallen angel, p. 165 the pricing of aTreasury
bond? bond, 1. p. 169the bonds from the table with annual coupon payments.
Price
floating-rate bond, p. 169 Treasury note, p.Price 169 the bonds from the table with semiannual coupon payments.
10. What must happen for us to2.call a bond a “fallen angel”?
foreign bond, p. 169 yield to call, p.3.167Price the bonds from the table with quarterly coupon payments.
income bond, p. 169 yield to maturity (YTM) or yield,
4. Price the bonds from the table with monthly coupon payments.
indenture, p. 166 p. 147
junior debt, p. 166 PREPPING FOR zero-coupon
EXAMS bond, p. 156 M06B_BROO0417_04_SE_C06.indd 178 08/08/17 7:01 PM
1. Five years ago Thompson Tarps, Inc. issued twenty-five-year 10% annual
coupon bonds with a $1,000 face value. Since then, interest rates in general
For the Visual Student. Illustrations with a Purpose
64 Chapter 3 • The Time Value of Money (Part 1)
have risen, and the yield to maturity on the Thompson Tarps bonds is now
M06B_BROO0417_04_SE_C06.indd 175
help students visualize important financial concepts. 08/08/17 7:01 PM
12%. Given this information, what is the price today for a Thompson Tarps
Figure 3.1 Time lines
of growth rates (top) and
bond? Today Future date (n)The time line is given special treatment in the all-
discount rates (bottom) a. $843.14
illustrate present value and b. $850.61
important time value of money and capital budget-
future value. c. $1,181.54 PV present value 3 (1 + growth rate)n = FV
ing chapters. To depict movement, present value is
d. $1,170.27
2. Endicott Enterprises, Inc. has issued thirty-year semiannual coupon always in a lighter shade and future value in a darker
bonds with a face value of $1,000. If the annual coupon rate is 14% and
the current yield to maturity is 8%,
future what is the firm’s current price per
value
shade, and PV is always on the left and FV always
bond?
PV =
(1 + discount rate)n
FV
on the right. This setup makes it easier to see com-
a. $578.82
b. $579.84
or, rounded to the nearest cent, $228.19. pounding from the present into the future and dis-
c. $1,675.47
counting “back from the future” to the present.
The nice feature about using the equation with a calculator is that the calcula-
d. $1,678.70
tor does not round the PVIF. As problems get more complicated, the rounding of
PVIFs
3. Benson from a table
Biometrics, Inc.becomes more problematic.
has outstanding $1,000 faceTherefore, our choice
value 8% coupon is to use the
bonds
thattable
makemethod only payments
semiannual as a check and
and have
not asfourteen
a standardyearsmethod to solve
remaining time value of
to matu-
58
rity.money problems. Chapter 3 • The Time Value of Money (Part 1)
If the current price for these bonds is $1,118.74, what is the annualized
yield to maturity?
The Use of Time Lines Methods of Solving Future Value
a. 6.68%
Another useful tool for solving present value and future value problems
b. 6.67% Problems
is a time
line, a linear representation of the timing of cash flows over a period ofEquation
c. 6.12% time. 3.2 is a basic tool for valuing all future lump-
Figure 3.1 illustrates two time lines that can help us visualize the two key
d. 6.00%
cepts of present value and future value.
sum con-
Graphic illustrations are occasionally presented
payments. All we need to know are the initial
4. Delagold Corporation is issuing a zero-coupon bond that will have a matu-deposit or present value of the account (PV), the interest
Each time line shows today at the left and the stopping or future point (matu- as another way of “seeing” a concept. All illustra-
rity of fifty years. The bond’s par value is $1,000, and the current yield on rate (r), and the length of time the money will remain
rity date) at the right. The time line displays the present value dollar amount in the account (n). The interest rate is the growth rate,
at the left and the future dollar value at the right. The distance betweenor tions say something about finance.
thethe annual percentage increase on an investment.
endpoints represents the total elapsed time and is reflected by n, the number of
The growth rate raised to the power of the number of
periods between PV and FV. The top time line depicts the growth rate. It gradates(1 + r)n, is the future value interest factor
periods,
from lighter in the present to darker in the future, indicating an increase in value.
(FVIF): as n (the time, or the number of periods)
Yakobchuk Vasyl/Shutterstock
The bottom time line depicts the discount rate. It gradates “back from the future,”the FVIF increases; and as r (the interest rate)
increases,
M06B_BROO0417_04_SE_C06.indd 174 from darker to lighter, indicating a decrease in value. increases,08/08/17 7:01 PM
the FVIF increases. Thus, the future value is
Using a time line to lay out a time value of money problem will become more of both the interest rate and the number of
a function
and more valuable as our problems become more complex. To help minimize time periods.
input errors, you should get into the habit of using a time line to set up these We can determine future values by using any of four
problems prior to using the equation, calculator, or spreadsheet. The time line (1) equation, (2) financial functions on a calcula-
methods:
can become one Theof your mostofuseful
compounding interest tools.
over time accelerates the growth of tor, (3) spreadsheet, and (4) FVIF table. We’ve just looked
money.
at the equation method, which we will call Method 1. Now
3.3 One Equation and Four Variables let’s walk through the methods for calculating future value
using the college fund account example from the chapter opener. The original
xx Our time value of money equation has considerable deposit firepower
(birthday ingift)
thatiseach vari-(the present value, PV), and the annual interest
$15,000
able can answer different questions. By rearranging rate isthe
5%equation,
(r) over thewenext
can eighteen
isolate years (n). How much will you have in your
the four different variables on the left side of theaccount
equation. Of end
at the course, we will years?
of eighteen
need to know the values of the variables remaining on the right side of the equa-
tion before we can solve for the variable of concern. Method 1: The equation This method for calculating future values uses a
The first form of the equation, FV = PV × standard (1 + r)n (Eq. 3.2), isolates
calculator and the the vari- value equation. We already know that we can
future
able FV at a specific future point in time. This form find ofthethe equation
solution by can answer
solving a
the equation
question such as “How much money will I have in my account at a specific point
in the future given a specific interest rate?” FV = PV(1 + r)n
A01_BROO0417_04_SE_FM.indd 20 The second form of the equation, PV = FV × 3 1>(1 + r)n 4 (Eq. 3.3), iso-= $15,000.00 × (1.05)18 30/11/17 10:33 AM
lates the variable PV. Present value is the same as the current price of an asset,
M YLAB F I NANCE
Reach Every Student by Pairing This Text with MyLab Finance

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student. By combining trusted author content with digital tools and a flexible
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teach multiple sections, or set prerequisites, MyLab gives you the flexibility to
easily create your course to fit your needs.
Improve Student Results

When you teach with MyLab, student performance improves. That’s why instruc-
tors have chosen MyLab for over 15 years, touching the lives of over 50 million
students.
Just as the evolution of technical support has been great for students, it has
also been great for the instructor. MyLab Finance provides the extra support
that time constraints often prevent an instructor from providing to students.
With every end-of-chapter problem formatted in MyLab Finance, an instruc-
tor can assign a text-related problem that students solve online with technical
support. The problem’s solution is available to students, and the marking of
student homework assignments is completed by MyLab Finance. In addition,
MyLab Finance includes features such as Help Me Solve This, which leads stu-
dents step by step through the problem with a different set of numbers.
New to the fourth edition, MyLab Finance now offers auto-graded Excel
Projects for the Advanced Problems for Spreadsheet Application in Chapters 2
through 18. These data-intensive problems offer more flexibility in assigning
problems and provide students with the opportunity to practice important
finance skills in Excel.
xxi

DEVELOPING EMPLOYABIL IT Y
SKILLS
One of the major objectives of all students is to develop and improve those skills
that increase their employability. Regardless of a student’s major, there are certain
common skills that employers seek from their new hires across all facets of the
business. In Financial Management: Core Concepts, students are challenged to hone
these skills by learning which of the factors in a decision are relevant and which
are irrelevant. They learn how to properly weigh different factors so that the solu-
tion is driven by the most important facts, not the minor or marginal facts that
often lead to poor solutions.
Additionally, students develop technical skills with calculators and spread-
sheets. This book teaches not only how to manipulate input for calculators
and spreadsheets, but also what the reasoning is behind the inputs that pro-
duce the desired solution. For example, we use a three-method approach to
problems, with the starting method being the basic equation that forms the
theoretical understanding of the problem. We then help translate this equa-
tion directly into a calculator that solves the problem efficiently. Finally, we
translate the problem so it can be solved using a spreadsheet. In fact, this book
provides many problems that utilize spreadsheet applications. Job seekers who
are able to translate a problem from its original setting into either a calcula-
tor or a spreadsheet problem are more employable because they can work
with large sets of information and find correct answers more quickly and
efficiently.
Lastly, Financial Management: Core Concepts helps develop analytical skills—
increasing students’ ability to analyze performance and make decisions based
on this analysis. Students learn how to compare performance over time and
with competitors. By analyzing differences in performance over time or across
companies, students can make decisions about what actions will be beneficial
to their future employers’ business. Employees who can understand what ac-
tions influence performance in either a positive or a negative direction and can
then advocate for actions that will increase performance are the most critical
employees in a business.
xxii

ASSETS Amount Percentage LIABILITIES Amount Percentage
Current assets Current liabilities
Cash $ 150 2.26% Accounts payable $ 331 5.00%

Taxes payable $ 265 4.00%
Accounts receivable $ 305 4.60%
Total current liabilities $ 596 9.00%
Inventories
Long-term debt $ 2,902 43.78%
Raw materials $ 240 3.62%
Total liabilities $3,498 52.78%
Finished goods $ 480 7.24% OWNERS’ EQUITY
Total inventory $ 720 10.86% Common stock $ 62 0.94%
Total current assets $1,175 17.72% Retained earnings $ 3,068 46.29%
Net fixed assets $ 5,453 82.27% Total owners’ equity $3,130 47.23%
TOTAL LIABILITIES AND
TOTAL ASSETS $6,628 100.00% OWNERS’ EQUITY $6,628 100.00%
Figure 12.6
So for the balance sheet to balance, long-term debt must be $2,902,000

($6,628 − $331 − $265 − $62 − $3,068 = $2,902). Therefore, the long-term
debt account needs to increase by $200,000 ($2,902,000 − $2,702,000). To
complete the $500,000 funding for the project, the company will need outside
funding of $200,000. The other funding will come from internal funding sources.
PUTTING FINANCE TO WORK
Information Technology
Careers. “Putting Finance to Work” answers a The quality of short-term financial
plans and forecasts depends com-
that handles thousands of transac-
tions a minute in every corner of
question students often ask: “Why do I need to take a pletely on the quality of informa-
tion that goes into them. The cash
the globe, an apparently simple
question such as “How much cash
finance course, anyway?” These snapshots of widely flow forecast requires us to know
what inventory we have on hand,
do we have on hand?” is not that
simple.
varied careers show that specific finance concepts where it is, how long we expect
to hold it before we sell it, and
These data requirements pres-
ent a challenge even for relatively
how long it takes us to replace it. uncomplicated businesses that
are used in many different career paths. It requires us to know how much manufacture just a few products
money our customers owe us and like furniture or that retail a single
when we expect them to pay. The product like automobiles. For a
sales forecast requires data on what we sold recently, company such as Procter and Gamble that manufac-
what we sold in the same period last year, and what tures an array of consumer products from many dif-
trends are developing. For a company like McDonald’s ferent raw materials in many locations or for a retailer
Continued
26 Chapter 1 • Financial Management

MINI-CASE
This mini-case is available
Richardses’ Tree Farm Grows Up in MyLab Finance.
Jake Richards is surprised to hear from Paul Augus- corporation, and a limited liability company, or LLC.
tus, his accountant for many years, that income from He asks Jake to look them over and get back to him in
his tree farm is just over $150,000 for the year and a week or two.
that his land and other assets are valued at almost
Questions
Different Kinds of Businesses. “Mini-Cases” at the $2,000,000. The $600,000 he owes to the bank is not
a surprise. 1. Major financial management decisions involve capi-
tal budgeting, capital structure, and working capital
end of every chapter put abstract concepts to work
Twenty years ago Jake realized that with seven
management. Give an example of each that relates to
long days of backbreaking labor a week, his western
Richardses’ Tree Farm.
Massachusetts dairy farm was just about breaking
in the types of organizations for which students will even. Without his wife’s income as a high school
science teacher and the health insurance that
2. Should the Richardses form a regular corporation
or choose one of the hybrid forms? Whichever form
later work. The cases feature small businesses, large came with it, the young family would have been
struggling.
they use, they intend to distribute ownership equally
among Jake, his wife, and their two children so that
corporations, town organizations, and start-ups. Along the way, Jake sold the dairy herd, but he
did want to keep the land that had been farmed by
each party will own 25% of the shares. Consider the
tax consequences of their decision.
his family for three generations. At the time, his plan 3. How does incorporating affect the family’s overall
was to repurpose the farm and some of its equipment risk exposure?
by boarding horses, selling hay bales to construction 4. How does incorporating affect the ability of the
companies, starting a small landscaping business, business to expand?
and plowing snow in the winter. Almost on a whim,
he planted a few acres with seedling-size blue spruces 5. Jake is concerned that if the business gets much
bigger or if he should just decide to slow down and
and Fraser firs, expecting to sell them as Christmas
enjoy life a little more, he will need to hire profes-
trees. He quickly found that he could use them more
sional management and possibly lose control over
profitably in his landscaping business and that he
key business decisions. Are his concerns justified?
could sell them to local nurseries and other landscap-
ers. Gradually, he added plantings of other popular 6. Jake occasionally hires day workers, who may or
landscape trees: arborvitae, yew, dogwood, red maple, may not be in the United States legally. What are
ornamental crabapple, pear, and cherry. Demand his legal and ethical obligations with respect to this
grew so rapidly that he gave up his other activities to decision?
concentrate on tree farming. He now has three full- 7. The Richardses are deeply concerned with environ-
time employees along with his wife, two college-age mental issues and know that the best practices for
children, and several of their friends working for him pesticide and fertilizer usage increase production
in the summer. He also owns and leases some rather costs. Will incorporating affect their ability to give
expensive specialized equipment for planting, digging, up a small amount of profit in exchange for protect-
and preparing the trees for shipping. ing the environment?
Because the business has grown so rapidly and 8. How does incorporating affect the Richardses’ abil-
almost accidentally, Jake has not thought much ity to transfer ownership of the tree farm to their
about its organization. His accountant suggests that children?
it is time to consider converting from an informal
9. Suppose this business has an opportunity to
partnership with his wife and children to a more
become much larger at some point in the future.
formal type of organization. Paul hands Jake some
How might it obtain more equity funding and per-
brochures on forming a regular corporation and
two alternatives: a subchapter S corporation, or S haps create considerable wealth for the Richards
family in the process?
M01B_BROO0417_04_SE_C01.indd 26 23/10/17 10:41 AM
xxiii

TA B L E OF CONTENTS OV E RV IE W
Part 1 Fundamental Concepts and Basic Tools of Finance

Ch. 1: Financial Management Introduces the movement of money from lender to borrower and back, the main areas
of finance, and the setting of finance in a paradigm know as agency theory.
Ch. 2: Financial Statements Introduces the four key financial statements and the cash flow identity to prepare
students for analyzing cash flow.
Ch. 3: The Time Value of Money Presents the time value of money for single (lump sum) payments and the four
(Part 1) variables; time, interest rate, present value, and future value.
Ch. 4: The Time Value of Money Expands time value of money with multiple payment streams and the annuity concept.
(Part 2) Introduces different loan formats and amortization schedules.
Ch. 5: Interest Rates Discusses the various ways interest rates are quoted and introduces the components
of interest rates.
Part 2 Valuing Stocks and Bonds and Understanding Risk and Return
Ch. 6: Bonds and Bond Introduces the terminology of bonds, bond pricing, bond ratings, and the relationship
Valuation between coupon rates and yields.
Ch. 7: Stocks and Stock Explains the characteristics of stocks, primary and secondary stock markets,
Valuation and values stocks based on historical dividends of the individual stock.
Ch. 8: Risk and Return Calculates profits and returns using the holding period and converts the holding period
return to annual return. Defines risk and ways to measure risk using standard deviation
and beta.
Part 3 Capital Budgeting
Ch. 9: Capital Budget Decision Introduces capital budgeting and six models: pay-back, discounted pay-back, net
Models present value, internal rate of return, modified internal rate of return, and profitability
index for capital budgeting decision making.
Ch. 10: Cash Flow Estimation Introduces incremental cash flow for capital budgeting and how to calculate deprecia-
tion and cost recovery using an accelerated depreciation method.
Ch. 11: The Cost of Capital Presents the different types of funding available for companies, the calculation of
weighted average cost of capital, and the application of the cost of capital to individual
projects of the company.
Part 4 Financial Planning and Evaluating Performance
Ch. 12: Forecasting and Short Introduces the sources and uses of cash and the use of forecasting to predict cash flow,
Term Financial Planning timing of production costs, potential cash excess or cash short-fall, and the preparation
of pro forma statements.
Ch. 13: Working Capital Models the cash conversion cycle, introduces issues with credit, and introduces
Management inventory management models.
Ch. 14: Financial Ratios Introduces financial ratios and provides ways to interpret the ratios across time for
and Firm Performance individual companies and between competitors.
Part 5 Other Selected Finance Topics
Ch. 15: Raising Capital Introduces the life cycle of a business and how that impacts the different funding
sources of a business. Explains the process to legally end a business.
Ch. 16: Capital Structure Explains different borrowing rates based on the ability to repay and introduces optimal
capital structure through a combination of debt and equity financing.
Ch. 17: Dividends, Dividend Explains the process for paying dividends, individual preferences for different types of
Policy, and Stock Splits dividends, and how a company determines dividend policy and stock splits.
Ch. 18: International Financial Introduces the cultural, business, and political differences for a multinational business.
Management Explains exchange rates, cross-rates, and forward rates and their impact on business
profits.
xxiv
A01_BROO0417_04_SE_FM.indd 24 30/11/17 11:26 PM

Another random document with
no related content on Scribd:
The Project Gutenberg eBook of Lappalaisia
lauluja
This ebook is for the use of anyone anywhere in the United States
and most other parts of the world at no cost and with almost no
restrictions whatsoever. You may copy it, give it away or re-use it
under the terms of the Project Gutenberg License included with this
ebook or online at www.gutenberg.org. If you are not located in the
United States, you will have to check the laws of the country where
you are located before using this eBook.
Title: Lappalaisia lauluja
Editor: Otto Donner
Release date: March 25, 2024 [eBook #73262]
Language: Finnish
Original publication: Helsinki: Suomalaisen Kirjallisuuden Seura,

1876
Credits: Jari Koivisto and Tapio Riikonen
*** START OF THE PROJECT GUTENBERG EBOOK LAPPALAISIA

LAULUJA ***
LAPPALAISIA LAULUJA
Kokoili
O. Donner
Helsingissä, Suomalaisen Kirjallisuuden Seuran kirjapainossa,

1876.
Omistettu Elias Lönnrot'ille suomalaisen

kansalaulun ansiorikkaalle herättäjälle.
Sisällys-luettelo:
Alkulause.
I. Varemmin julkaistuja Lappalaisia runoja. —
Fjellner. -Sorsele.
II. Lappalaisten kertoma-runot: Päiven paarne,
Piššan Paššan pardne, Päiven neita ja Kassa muödda.
III. Lapin runouden eri lajit: kertoma-runo, tarinoita
ja elinsatuja. -Sananlaskuja ja arvoituksia.
IV. Lyrillistä runoutta.
V. Runo-mitta.
VI. Ikä. — Laulujen muoto Syrjäniläisillä ja
Mordvalaisilla. — Yhteinen ja alkuperäinen
satu-aine. — Jumaluus-käsitykset.
VII. Kertoma-runot.
VIII. Pienempiä lauluja.
Alkulause (Elias Lönnrot'ille).
Tuo paimentolaisten puutoksista niin yltäkylläinen elämä

Lapinmaan härmäisillä takamailla ei suo heille paljon tilaisuutta
antautua runollisuuden onnellisempiin unelmiin; ankara taistelu
olemuksen puolesta antaa ajatuksille kokonaan niiden sisällön. Sen
vuoksi kuvastavatkin tässä jäljempänä seuraavat laulut, ainoat jotka
nykyiseen aikaan saakka ovat kootut, ainoastaan aivan vähän
kehittynyttä henkistä elämää. Kuitenkin on Sinusta, joka olet niin
perehtynyt suomalaisten kansalauluin kukkaistarhaan, halvalla
kanervallakin tuore metsätuokseensa. Ota se siis hyväntahtoisesti
vastaan.
Sinä tiedät kyllä ett'ei se vaadi itselleen suurta runollista arvoa.

Kansatieteellisenä kuvaelmana, osoitteena siitä, kuinka ihmisen
ajatustapa muodostuu niin puutteellisissa ja vaivanalaisissa
suhteissa lienee tällä kokouksella kuitenkin suomalaisten kansain
sivistyshistoriassa arvonsa. Sulimmat kiitokseni siitä harrastuksesta,
jota olet osoittanut tätä kohtaan, mutta erittäinkin "Päivän poikain"
suomen- noksest Sallittakoon minun tässä lausua kiitollisuuteni
niillekin, jotka tiedonannoillansa ja aikaisemmilla käännöksillänsä
ovat saattaneet tehtäväni mahdolliseksi. Rakkaassa muistossa on
vanha Fjellner Sorselessa säilyttänyt muistelmia lapsuudesta —
vuosisatamme alusta. Hänettä olisivat ne luultavasti jo aikoja sitten
haihtuneet kansan muistosta. Olkoot nämä vanhuksen mielestä
ikään kuin hänen oma pystyttämänsä muistopatsas esi-isille!
Useimpia lauluja antoi minun käytettäväkseni kuolinvuoteellansa,

nykyjään tuonen majoihin muuttanut, Jaakko Fellman Lappajärvellä,
toisia antoi minulle ystävällisesti J.U. Grönlund Tukholmassa.
Kääntäissä olivat erittäinkin herra pastori Joh. Mörtsell Maidissa ja A.
Laiti Vesijärvellä sekä J. Krohn ja A. Genetz täällä useimpain lauluin
suomentamalla ystävällisimmästi avulliset. Heille jokaiselle pyydän
lausuani sulimmat kiitokseni.
Laulunäytteet, joita on ko'ottu Venäjän Lapissa, saattavat

arvelemaan, että niitä on vielä melkoiset määrät lappalaisten kesken.
Onnistukoonpa vielä jonkun saada kootuksi sellaisiakin, 'joilla on
suurempi runollinen arvo ja tulkoon siten todistetuksi, että
lappalaisetkin kerran ovat olleet samanlaisten tunteiden elähyttämät
kuin heidän heimokansansa.
Helsingissä, tammikuussa 1876.
O. D.
I.
Varemmin julkaistuja lappalaisia runoja. — Fjellner'in elämäkerta. —

Sorsele.
Vaikka Lappalaiset ja heidän omituinen elämänsä Pohjani

lumitanterilla jo lähes kolme vuosisataa ovat olleet vilkkaiden
kertomusten esineenä, joita sekä oman maan miehet että
ulkomaalaiset ovat julkaisseet, niin on kuitenkin aivan luonnollisesti
tämän elämän ulkonaisempi puoli ollut muukalaisille viehättävin.
Tosin on tämän ohessa annettu myöskin jonkinlaisia tietoja kielestä
ja sen heimoista, mutta ensimäinen täydellinen kieli-oppi, jonka
toimitti P. Fiellström Etelä-Ruotsin murteesta, ilmestyi vasta 1738.
Vähän laveammalta ovat lähetyssaarnaajat ja muutamat matkustajat
kertoneet Lappalaisten pakanallisista jumaloista; täydellisen
kuvauksen heidän mytologiastaan antoi kuitenkin vasta v. 1871 J.A.
Friis, tuo Lapin kansan tuntemisessa ansiollinen Christianian
yliopiston professori, joka myöskin samassa kirjassa norjan-kielisenä
käännöksenä julkaisi suuren joukon lappalaisia satuja ja tarinoita
Lapin eri tienoilta. Siihen saakka oli tämmöisiä ilmestynyt paraasta
päästä satunnaisesti. Ensimäiset julkaistut lapinkieliset tuotteet, jotka
olivat lähteneet kansan omasta kuvaus-aistista, ovat Friis'in v. 1856
ulosantamat lappalaiset sadut ia tarinat, 41 luvultansa, jotka hän
julkaisi "kielen näytteinä".[1]
Tämä huolimattomuus ominaisesta, lapinkielisestä osoitteesta,

joka kuvaelisi kansan ajatustapaa ja mielenlaatua, on kuin jo 17
vuosisadan alusta pappien ja lähetyssaarnaajien tarpeeksi oli ruvettu
painattamaan lapinkielisiä kirjoja ja sentähden varmaankin, yksistään
kielen taidonkin vuoksi, myöskin omakielistä tekstiä olisi tarvittu.
Mutta kansalle omituisten tarinain arvo oli jotenkin alhaalle laskettu,
erittäinkin koska niitä julkaistiin enimmiten suorasanaisessa
muodossa. Vaan että myöskin runoja Lappalaisilla oli olemassa,
olivat jo useat kirjailijat väittäneet. Scheffer julkaisi arvokkaassa
kirjassansa Lapin maasta kaksi pientä laulua, sekä alkuperäisellä
kielellä että latinaisella käännöksellä, jotka tähän asti ovat olleet
ainoat lapin kielellä.[2] Sjögren kertoo,[3] että Sodankylän
Lappalaisilla on runoja, joissa lauletaan heidän esi-isiensä menneinä
aikoina loihtovoimalla toimittamia urostöitä, ja hän lausuu tässä
tilaisuudessa, että täydellinen semmoisten runojen kokoelma olisi
varsin tärkeä käsitykselle Pohjanmaiden pakanuuden omituisesta
luonteesta. Samassa Sodankylän pitäjässä kirjoitti hän muistoon,
monista muista puhumatta, myöskin yhden lappalaisen runon, joka
kertoi miten köyhä Wenäjänpuolinen Lappalainen kosi ruotsalaista
lappalaistyttöä naapuristossa (l.c. siv. 221). Mihin nämä runot ovat
joutuneet, sitä ei tiedetä; hänen jälkeen jättämissänsä papereissa
Pietarin akatemian kirjastossa niitä ei löydy, sen mukaan minkä
minulle hra valtioneuvos Wiedemann on suosiollisesti ilmoittanut.
Tämä viittaus lappalaisten kansanrunojen keräilemiseen ei näy

synnyttäneen uusia puuhia. Mutta v. 1849 ilmestyi ruotsalaisessa
aikakauskirjassa "Läsning för folket", vuosikerta XV ja seurr.,
jokseenkin hauskoja kertomuksia Ruotsin Lapista ja sen asukkaista,
jotka oli toimittanut ijäkäs, tätä nykyä jo yli 90 vuoden vanha, pastori
J.A. Linder Uumajalla, ja jo kirjoituksensa ensimäisessa osassa
(vuosik. XV, siv. 341 ja seurr.) ilmitoi hän ruotsalaisena käännöksenä
otteen lapin kielisestä Peiven parneh (auringon pojat) nimisestä
runosta; hän oli saanut tämän eräältä pastori Fjellner'iltä. Tämä tällä
tavoin julkaistu kertomaruno levisi päivälehtiin, (Postoch Inrikes
Tidningar Tukholmassa, Helsingfors Morgonblad N:o 84 vuosik.
1850, St. Petersburger Zeitung.) ja näistä toimitti sen W. Schott
saksalaisena käännöksenä A. Erman'in aikakauskirjaan "Archiv für
wissenschaftliche kunde von Russland" nid. XII ss. 54-61, Berlinissä
v. 1853. Moniin vuosikausiin tästä runosta, saatikka sitten
alkuperäisestä, ei kuulunut sanaakaan; se näytti joutuneen
unohduksiin. Friis sen uudestaan painatti mythologiaansa (J.A. Friis,
Lappisk Mythologi, eventyr og folkesagn. Christiania 1871, s. 169
seurr.) sen muodon mukaan, mikä runolla on lehdessä "Läsning för
folket"; sittemmin saatti sen taasen t:ri Bertram saksalaisen yleisön
luettavaksi (Peivash Parneh, Die Sonnensöhne. Nach bruchstücken
einer epischen Volkssage aus Lappland, von Dr Bertram. Helsingfors
1872.), ehkä kuitenkin muodossa, joka varsin vaillinaisesti kuvastaa
tuon lappalaisen runon alkuperäistä luonnetta ja suoraa esitystapaa.
Myöskin englantilainen käännös ilmestyi, nähtävästi sommiteltu
viimemainitusta saksalaisesta mukailemasta.(Peivash Parneh, the
sons of the Sun-god. Translated to English by Mr Weatherby,
Colburnin New Monthly'ssa. Katso aikakauskirjaa "Academy", 17
tammik. 1874, siv. 61.)
Perinpohjaisessa kuvauksessaan Lapin oloista: "Om Lappland och

Lapparne, företrädesvis de svenske. Ethno-grafiska studier af Gustaf
von Düben. Stockholm 1873", jota runsasvaraista kokoelma-teosta
varten on käytetty kaikki kirjoitukset, mitkä siihen saakka tästä
aineesta löytyi julkaistuna, omistaa kirjäntekijä kokonaisen luvun
sivv. 318-347 Lappalaisten runollisuudelle ja soitannolle. Aivan
oikein muistuttaa hän, että useimmat heidän tutkijansa ovat
laiminlyöneet tätä puolta heidän sivistyselämässään. Mutta tähän oli
syynä se, että asiasta ei paljon mitään tiedetty. V. Düben'in onnistui
Sorselen pastorin A. Fjellner'in suusanallisen kertomuksen mukaan,
jota miestä kirjoittajan "Läsning för folket" lehdessä tuli kiittää
ensimäisestä tiedosta Päiven parneh runosta, antaa täydellinen
käännös tuosta runosta, vieläpä myöskin ilmituoda ihan uusi
epillinen runo: Pišša Pašša'n poika, ynnä useain lyrillisten runojen,
mytillisten kertomusten ja eläintarujen kanssa. Yhden osan näistä sai
hän hra kauppaneuvos J.U. Grönlundilta Tukholmassa, joka on
syntyisin Lapista. Nämä runot ja laulut antoivat arvollisia ja tärkeitä
lisäkeinoja Lappalaisten henkisen kehityksen tuntemiseen.
Tarkoituksensa saavuttamiseksi -hän tahtoi saada aikaan
kansatieteellisen kertomuksen Lappalaisista -oli kirjantekijä kyllä
kylliksi tehnyt, sillä hän täytti tuon aukon heidän henkisen elämänsä
kertomuksessa. Saattaaksemme päätellä lappalaisen ja
suomalaisen kansanrunon synnystä oli kuitenkin välttämättömän
tarpeellista, että saatiin verrata alkuperäiset runot toinen toiseensa.
v. Düben'istä päättäin on pastori Fjellner ainoa koko Lapinmaassa,
joka nyt enää nämä runot tuntee. Mutta hän on jo -sanoo v. Düben -
lähes 80 vuoden vanha ja sokea eikä sentähden pysty niitä enää
kirjoittamaan muistoon. Minä sentähden suvella 1874 päätin,
tavatakseni hra Fjellneriä, tehdä matkustuksen hänen luokse, kuljin
Uumajan kautta Lycksele'en ja täältä osittain jalkaisin osittain
veneellä Sorsele'en, missä tuo jo vuosien painosta vaipunut sokea
laulaja asiaan harrastuneena päivät pitkin minulle muistostaan luki
useimmat näistä runoista, jotka alempana olen alkuperäisessä
muodossaan julkaissut. Jo nuoruudessaan oli hän muiden muistista
pannut joukon näistä paperille; mutta suurin osa oli niin katkonaista
ja aukkoista, että sikäläisen murteen paras tuntijakaan ei olisi sitä
ymmärtänyt. Oikokirjoitus oli ylen mielivaltaista ja Säännötöntä, jotta
usein saimme hikoilla kauvan aikaa, ennenkun voin tavailla ilmiin
oikean sanan. Kaikki, mitä hänen suusanansa mukaan kirjoitin,
panin paperille tarkkaan niinkuin hän äänsi; en ole mitään
yhtämukaisuutta kokenut saada toimeen, lapin kirjakieltä Ruotsissa
taikka muiden puhumista vertaamalla. Viivyttyäni Sorselessa
puolitoista viikkoa matkustin Malå'n kautta Norsjö'hin 13 à 14
Ruotsin penikulmaa, ja täältä kärryillä Skellefteå'hon.
Koska sen miehen elämäkerran tunteminen, joka jo monia vuosia

on ollut ainoa, millä vanhemmista runoista on jotakin tietoa, ei saata
olla vähäpätöistä, niin annan tässä hänestä muutamia tietoja, jotka
olen saanut osittain häneltä itseltään osittain v. Düben'istä.
Anders Fjellner syntyi syysyön kylmässä v. 1795 18 p. syyskuuta

taivasalla Rūta vuoriston lumitunturilla Votta ja Sāl vuorien välissä
Herjedal'issa, lähellä Ruijan rajaa, ja tuli kylmässä kaltiossa pestyksi;
paikkakunta on Heden pitäjää. Hänen vanhempansa olivat kiertäviä
poro-lappalaisia. Mutta kun isä jo vuonna 1804 kuoli, lähetti eräs
kaukaisempi sukulainen tuon vilkkaan nuorukaisen Östersund'in
kouluun Jämtlannissa. Sieltä tuli hän Hernösand'in lukioon, jonka
lukujaksot suoritettuaan hän harjoitti lukemista Upsalan yliopistossa
v. 1818. Jo koulussa oli hän omaksunut nimen Fjellner siitä syystä,
että hän oli syntynyt korkealla vuorella (fjäll), samate kuin muutkin
nuorukaiset lappalaista syntyperää olivat omaksuneet fjäll-sanasta
johtuneita nimiä: Fjellström, Fjellman. Luku-vuotensa kaikki lupa-ajat
vietti hän kotiseuduillaan sukulaisten luona, pitäen täyttä
paimentolaiselämää. Täällä kuuli hän usein vanhojen ihmisten
pitkinä iltapuhteina muistostaan lukevan muinoisia runoja ja kertovan
satuja sekä tarinoita, taikka tuotiin tunteet ilmiin ilavissa lauluissa,
vuole'issa, jotka sanoin sävelin kuvastivat mitä erilaatuisimpia mielen
toiveita ja taipumuksia. Näitä vuole'ita laulettiin tavallisesti
ainoastaan taivasalla. Paraim-pien laulajain joukosta muisti fjellner
vielä erään Serri Jū'n, Anders Nilssonin, Per Mihte'n ja Ruijan
puolella Sakari Olavin-pojan vaimon, Kant ja Stolt nimisestä suvusta.
Liike Ruijan ja Ruotsin välillä oli, näet, näillä rajatienoilla varsin
vilkas, erittäinkin vaelsivat Lappalaiset usein edes takaisin;
kertomaja laulutaito oli heissä kaikkialla yleinen.
Vuonna 1820 jätti fjellner yliopiston ja vietti nyt lähetyssaarnaajana

monta vuotta Pohjois-Ruotsin Lappalaisten kesken, kuluttaen
suurimman osan aikaa matkoihin. Niin tapaamme hänet v. 1821
apulaisena tuolla Lapin oloihin perehtyneellä pastori L. L.
Læstadius'ella Karesuannossa, joka on Ruotsin Lapin pohjoisimpia
pitäjiä. Vuodesta 1828 vietti hän apulaisena jonkun ajan
Jukkasjärvellä, missä hän sitten yhtä mittaa oli asuntoa vv. 1831-
1842. Viimemainittuna vuonna muutti hän, vaimo, kaksi lasta ja 11
peuraa parissansa, ihan samalla tapaa kuin Lappalaiset talvisaikana
asuinpaikkojansa vaihtavat, Sorsele'en, missä hän siitä lähtien on
pappina oleskellut.
Tämä Sorselen pitäjä on Westerbottnin Lappia, jonka ala on 364

neliöpenikulmaa ja asukasluku 18,495 henkeä. Suurin osa näitä
tosin asuu rantamailla, mutta miten ruotsalainen asutus vireästi
entää edespäin, samalla kun lappalainen väestö joko vähentyy
taikka pysyy entisillään, on huomattava siitä, että väkiluku samojen
rajojen sisällä v. 1789 nousi ainoastaan 1,027 henkeen, joista suurin
osa Lappalaisia. Mutta yllämainituista 18,495 asukkaasta v. 1873 oli
ainoastaan 1,147 Lappalaisia, ja näistä tuli Sorselen pitäjän osalle
ainoastaan 267 Lappalaista 1,331 Ruotsalaista vastaan; P.
Læstadius'en mukaan (journ. II, 435) oli v. 1790 Sorselen
Lappalaisten luku 323 ja v. 1832 360. Miten tämän maan alan viljelys
80 vuotena on edistynyt, nähdään siitä, että veroitetun maan arvo v.
1790 laskettiin 49 ¼ manttaliksi, mutta v. 1873 jo 225 % manttaliksi.
Vaan mitä enämmin viljelys voittaa alaa, mitä enämmin ruotsalaiset
uutisasukkaat leviävät pohjoseen ja Norjan rajalle päin, sitä
varmemmin katoavat myöskin vähitellen Lappalaiset. Lapset oppivat
jo tähän aikaan suurimmaksi osaksi ruotsia ja sulavat siten
ruotsalaiseen väestöön, ihan samoin kuin Wermlannin Suomalaiset,
mitä kieleen tulee, nyt enää ainoastaan korpiensa kaukaisimmissa
perukoissa käyttävät äidinkieltään. Eikä saattane enää kestää
enämmin kuin vuosisadan taikka korkeintaan kaksi, ennenkun Lapin
kansa Ruotsissa, parannettujen kulkuneuvojen ja oppilaitosten
vaikutuksesta, on täydelleen sulanut Ruotsalaisiin.
II.
Lappalaisten kertoma-runot: Päiven paarne. — Piššan Paššan

pardne. —
Päiven neita. — Kassa muödda.
Ennenkun v. Düben arvokkaassa teoksessaan Lappalaisista

käännöksinä julkaisi nuo lukuisat runot, ei tiedetty mitään semmoista
runomittaisessa muodossa, paitsi tuo yllämainittu runo Päiven parne.
Hän julkaisi nyt kirjassaan, kuten jo ylempänä sanottiin, Fjellner'in
käännöstä noudattaen, sekä tämän runon että myöskin tuon yllä
mainitun Pišša Pašša'n pojasta, vieläpä kolmannenkin: Peijen neida,
päivän tytär, jonka suurin osa kuitenkin on suorasanaisessa
muodossa. N.s. Stalu-saduista löytyy hänen teoksessaan
runomittainen Kassa muodda, vahva turkki, ja muutamia
suorasanaisia, eläintäni lohesta ja taimenesta, joitakuita uudempia
runoja sekä lyhykäisiä epigrammatillisia pätkiä. Näistä tahdomme,
kustakin erikseen, laveammalta puhua.
Tuon epillisen runoelman Päiven pārne päivän pojat, jonka entiset

julkaistukset ylempänä olemme ottaneet huomioon, on v. Düben
kokonaisuudessaan ilmituonut seuraavalla uudella nimityksellä:
Peivebarnen suongah jehtanasain maajisn, päivän pojan
kosiomatkat jättiläisten maassa. Tätä verrattaessa ennen
julkaistuihin teksteihin huomaa, että pääasiallinen sisällys on sama;
v. Düben on vaan antanut runolle, niinkuin sillä alkukielessäkin on,
metrillisen muodon; myöskään ei löytynyt ennen alkuvärsyjä.
Fjellner'in aikaisemmin antaman tiedon mukaan on runo korjattu
paperille Tornion Lapissa (Jukkasjärvellä) Leuhnje niinisen
Lappalaisen suusanan mukaan. Minulle kertoi hän, että runoa on
laulettu sekä Jukkasjärvellä että Herjedal'issa, missä
viimeinmainitussa paikkakunnassa nuo jo mainitut Serri Jū ja Sakari
Olavinpojan vaimo sen olivat osanneet.[4] Viittä viimeistä riviä
arvelee hän myöhemmäksi lisäykseksi, minkä myöskin näkyy
todistavan Linder'in väite, että niitä tunnettiin ainoastaan Tornion
Lapissa.
Minun alempana julkaisemani teksti on Fjellner'in lausunnosta

tarkasti kirjoitettu hänen äänteensä mukaan. Minulla oli tässä
edessäni myöskin toinen kopio, minkä hän monia vuosia sitten itse
oli kirjoittanut; muutamat toisinnot ovat lähteneet tästä lähteestä
taikka syntyneet hänen muistutuksestaan: on myöskin näin laulettu.
G. kirjaimella merkityt olen saanut eräästä käsikirjoituksesta, minkä
kauppaneuvos J.U. Grönlund Tukholmassa hyväntahtoisesti
käytettäväkseni antoi. Myös senkin tallensi Fjellner 40
vuosikymmenen alussa paperille, pehmeämmällä etelä-murteella
kirjoitettuna; siinä seurataan, kuten edellisissäkin norjalais-
ruotsalaista oikokirjoitusta, missä etenkin vokali-ääntiöt varsin
vaillinaisesti kuvautuvat.
Tämän runon sankari on Kallajälkeinen; hän ja koko hänen

sukunsa ovat syntyperää auringon tyttärestä. He keksivät sukset, he
ajoivat ja kesyttivät peuroja, joita löytyy Cassiopæa'ssa, ja
ylimalkaan on kaikki mitä heidän elämäänsä kuuluu likimmäisessä
yhteydessä taivaallisten kohtain kanssa. Jupiter'inä on tuo loistava
peura, Venus'ena karvan-vaihtava naaraspeura, kiertotähtinä ovat
ylimalkain nuoret koiraspeurat, joita kiiman aikana on ajettu erilleen
karjalaumasta. Otava on heidän kaarensa, seitsentähti on Kalla-
poikain njalla'na, aittana.[5] Itse ovat he myöskin tähtiä: Orion on
yksi, Sirius on Kalla pardne, ja monet muut, niinkuin āks kuč, käls
kuč, kums kuč, jumpik ovat Päive pārne'ita, auringon-poikia. Mitä
kalla nimeen tulee, muistuttaa Schott, että se oikeastaan merkitsee
ijästynyttä taikka nainutta miestä, mutta että se ehkä on jossakin
yhteydessä suomalaisen Kaleva nimen kanssa; tässä kohden olisi
etenkin muistaminen, että Suomalaiset nimittävät Orion tähteä
Kalevan miekka.[6]
Toinen epillinen runo on Piššan Paššan pardne, Pišša Paššan

poika. Ensimäisistä rivistä käy selväksi, että isän nimi oli Pišša, äidin
Pašša, mutta runon joutuessa saapi kuitenkin isä molemmat nämä
nimet. Runo on sangen omituinen. v. Düben siitä sanoo: Koko
Runosta käypi selvä lappalainen henki. Aatteet ovat, jos luetaan pois
Noidan pitkä puhe, umpilappalaiset; samote myös tapausten kohdat.
Ne paikat, missä kaksintaistelut, taistelu-apulaiset ja haudankaivajat
sekä noidan tappeluksen vaatijana astuvat esiin, ovat ihan uusia ja
vieraita; mitään siihen vastavaa en ole missäkään tavannut.[7]
Epäilemättä on runo vallan vanha, jos ei sitä, niinkuin Fjellner tekee,
juuri johdattaisikaan Lappalaisten alkukodista Aasiassa. Jo tästäkin
syystä on mielestäni v. Düben aivan oikeassa, kun hän v. 54 kääntää
sanat varrek ja krappuk kannuskenkä ja kinnas sanoilla, sillä näillä
on yksinään tämä merkitys eivätkä ne ensinkään tiedä mitään
raudasta; kypärä sanaa on hän paremman puutteessa käyttänyt.
Säejaksoissa 83 ja 124 on hän kuitenkin säilyttänyt rautapantsari
sanan, se kun näet on tärkeä, koska sankari sen painaa vihollisen
rintaan, ja se siitä syystä myöskin arvattavasti oli rautainen.
Muistuttaminen on kuitenkin, että yhdessä toisinnossa molemmissa
paikaissa rauta sanan sijassa on sōte sarkab, mikä merkitsee
ainoastaan sotapaitaa.
Runon sisällys, jonka v. Düben käännöksessä kehittää, pitää

jotenkin tarkasti yhtä erään alkumuodon kanssa, joka vielä on
Fjellner'in omassa hallussa ja jonka hän moniaita vuosia sitten
kirjoitettavaksi luki silloiselle apulaiselleen, nykyiselle Malån
kirkkoherralle Juhana Mörtsell'ille. Sanat, jotka hän minulle mennä
kesänä kirjoitettavaksi luki ja jotka alempana olen julkaissut,
poikkeevat ainoastaan erityisissä lauseissa ja varsin vähäpätöisestä
ensinmainitusta, niinkuin muistutuksista on nähtävänä.
Paluumatkallani Sorselesta viivyin kaksi päivää Malå'ssa, missä olin
tilaisuudessa hra Mörtsell'in kanssa tarkastella P.P. runon alusta
loppuun, jolloin hän ystävällisesti antoi minulle monta hyödyllistä ja
valaisevaa selitystä. Tämä runon muoto on Fjellner'in mukaan
kotoisin Pohjois-Lapista, mutta toisen paljon lyhyemmän on hän jo
nuorena ollessaan kirjoittanut Herjedal'issa Tämä löytyikin hänen
papereistaan nimellä Piššan Paššan alge, P.P:n poika. Pahaksi
onneksi oli kuitenkin tämä toisinto kirjoitettu niin huonolla käsi-alalla'
ja oikokirjoituksen puolesta niin mielivaltaisesti, että siitä ei enää
voinut saada il-miin mitään järjellistä sisältöä; Mörtsellkin, vaikka hän
on hyvin tutustunut Ruotsin Lapin kieleen, sai mukaan ottamastani
kopiosta ainoastaan paikoittain selvää. Otan siitä seuraavat
pääkohdat: Miehen kuoltua, pakenee hänen vaimonsa metsältä
metsään (vulga batera tzemem tzememest). Viimein saapi hän
pojan, joka, suureksi kasvaneena, kysyy äidiltään: etnem, gokte mu
atijen njemme, äiti, mikä on isäni nimi? Vastaukseen, ett'ei hänellä
ole nimeä ensinkään, lausuu hän: imen lem monno muoriste
gedkiste tjettjelem (varmaankin čuočelam), enhän toki ole syntynyt
puista ja kivistä. Kun äitinsä hänen pyynnöstään (etnem, daita
mennen laipem) on leiponut hänelle leivän, pakoittaa hän hänet,
puristaen leipää käteensä: etnem, sardna mu atjen nimmem[8] äiti,
sano minulle isän nimi. Nyt saapi hän tietää syntyperänsä ja että
mustan vuoren harjanteen (tjebpes asen) Stalu on hänen isänsä
tappanut, mutta, jatkaa äiti: alle me pardnem dohka vuelke, älä
mene sinne, poikani. Hän menee kuitenkin ja astuu sisään
Hasman'in (?) kotaan: Hasmannen kåtan tjanga. Stalu käskee
palvelijansa kutsua vieraan luoksensa; nuorukainen tulee ja tapaa
vanhuksen leikkaamassa omistusmerkkiä peuran korviin. He
tervehtivät toinen toistansa, ja vanhus, turhaan koettaen osata
nuorukaista nuolillaan, antaa nuoren sankarin kysymyksiin nuo
täydellisemmästä runosta tunnetut vastaukset (Piššan Paššan
banine!). Tähän loppuu käsikirjoitus muutamilla sanoilla, joista ei saa
selvää. Tärkein kohta tässä katkelmassa on se, ett'ei noita muka
Aasiasta muistuttavia paikan nimiä (Altait, Baikkala peeliit, Lääna,
Ammart ja Čukčan oive) mainita sanallakaan, sekä myöskin, että tuo
uhkea tappelukseen vaatimus noidan kautta, taistelu-apulaiset ja
haudankaivajat jäävät pois; ja vieläkin, tuo pitemmässä runossa
tavattava noidan ylen pitkä, kristillisillä lauseilla koristettu, puhe
puuttuu kokonaan. Jos kohta v. Düben'in kanssa myöntää, että tuo
kohtaus miekkaisille vaatimuksessä on selvin lappalainen ja varsin
hyvin soveltuu runon sisältään yleensä, näkyy kuitenkin tämä toinen
toisinto todistavan, että muut osat s.o. nuo epäiltävät nimet ja
mainittu, pitkä puhe, ovat pidettävät myöhempinä lisäyksinä.
Johtopäätös joko tehdään tämä, taikka on otaksuminen, että runo
aikaisemmin on sisältönsä puolesta ollut mytillisempi ja sitten
vähitellen muodostunut semmoiseksi kuin se nyt on. Asianomaiset
välirunot ovatkin hyvin höllässä yhteydessä muun sisällön kanssa.
Nämä muistutukset koskevat myöskin 64 v. löytyviä säejaksoja
Huureskuče'sta ja llma-račče'sta; ne hääritsevät varsin tuntuvasti
kertomuksen juoksua ja puuttuvat: Herjedal'ista saadussa
käsikirjoituksessa. Tämä katkelma kun on erinomattain tärkeä tätä
miellyttävää runoa arvosteltaessa, liitän sen tähän
kokonaisuudessaan, kirjaimesta kirjaimeen semmoisena kuin se
Fjellner'in käsikirjoituksessa löytyy; sulkumerkissä liitän siihen
muutamia arveluita.
P.P. alge.
Stalo P.P. alge luotem ja itz dem nielem kojneb vuositze vulga
batera tzemem tzememest. Algem fihkije dej ne fontere. Gosse
Stora sjadta. Olle mosme gosse ge don tsepesse osonn valze olla.
Njorte dueikte manninne tetzelle. Aktelzem gåtan pucklelle fjerte
(virttī) smavelle. Vuejna ferte adnae. Ahtjem, etnem åtnei. A.
etnemse gihchie: Etnem gokte mu Atjen njemme? E. I ma namme do
mige. Ahtjet. Imen lem monno muoriste gedkiste tjettjelem
(čuočelam). E. Arme krovehkem gelijem possju raikem pekta kalkem
sardnet. Maje tjaka ge ficke goltte. Arme Momse (ruömse) kalles
pjelje rohtziste moriten verdet possja njalman votatella. Dille ahtzette
njemmem påtah kolenne. Dem vojte nimte siekta meitten. I dilloge
sardnh. A.E. Daita monnen lajpem. Etnebbe dojte. Rivest dem vuoss
kerdam pueke gessa tjoppam monnen! monne itz pessam. Dem
fihkje. Etnebben ketem beksa ketem dejne gekke lajpine djen taesti
Etnem sardna mu atjen nimmem. E. Hauh. P.P. mana mo. A.E. ff.
Gop. pah le siett. E. Tjehpes Asen. Stalo le ålge luotem. Alle me
pardnem dohka vuelke. Elge Ednisse ketem tuoj ta tellah tåhka
tjolije. Hasmannen kåtan tjanga. H. Tälla Pardne Ih den diste påte
puosta geje rajkemb knömme jokte kuossje påte tjetem. Itsim
Ajiesse sardneje. A. Vattsidde vatsidde pejkatetidde (piikutete, lasset

Ebook Download (Original PDF) Financial Management: Core Concepts 4th Edition by Raymond Brooks All Chapter

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(Original PDF) Financial Management:

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RAYMOND M. BROOKS is Emeritus

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PART 1 Fundamental Concepts and Basic Tools of Finance 1

PART 2 Valuing Stocks and Bonds and Understanding Risk

PART 3 Capital Budgeting 257

PART 4 Financial Planning and Evaluating Performance 357

PART 5 Other Selected Finance Topics 461

APPENDIX 1 Future Value Interest Factors 589

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The First Component: Cash Flow from

1.9 Corporate Governance and Business

of 2008 19 3.1 Future Value and Compounding Interest 56

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Interest and Principal at Maturity of Loan

5 Interest Rates 115

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Key Terms 173 Advanced Problems for Spreadsheet

7 Stocks and Stock Valuation 181

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Opportunity Costs 302

9 Capital Budgeting Decision Models 258

Sales: Your Product = Your Customer’s

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Prepping for Exams 347 Average Payment Cycle 392

12 Forecasting and Short-Term ­Financial

Advanced Problems for Spreadsheet

13 Working Capital Management 387

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Profitability Ratios 437 The Marketing Process: Road Show 479

PART 5 16 Capital Structure 495

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Prepping for Exams 519

17 Dividends, Dividend Policy, and Stock

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New to This Edition

better understanding on valuing firms. We have added the distinction be-

enhanced examples, and arrange the order of topic presentations.

animated figures and author-created solutions videos for in-text examples.

now offered in MyLab Finance as auto-graded Excel Projects. Using proven,

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be in 148 years at an annual

B6 METHOD 3 Using a spreadsheet fx 5FV(B1,B2,B3,B4,B5)

e­ xamples, an Excel solution is added. Basic spreadsheet1 Rate

M03_BROO0417_04_SE_C03.indd 67 25/10/17 12:

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Figure 6.3 Future cash flow T0 T1 T2 T3 T4 ... T8 T9 T10

$65 $65 $65 $65 ... $65 $65 $65

M06B_BROO0417_04_SE_C06.indd 150 08/08/17 6:59 PM

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PART 2 Valuing Stocks and Bonds and Understanding Risk

12 Forecasting and Short-Term Financial

e xamples, an Excel solution is added. Basic spreadsheet1 Rate