Revised 12/09/04
Essentials of Managerial Finance, 13th Edition
To provide a textbook that is free of errors, in the preface of the book we offer a monetary reward to the first person to report an error.
The list below includes errors reported to us as well errors we have discovered, including typographical and other minor changes
recommended for subsequent printings of the text. The errors reported to us and compiled on this list are corrected in subsequent
printings of the text; so if you have a text from a later printing, many, if not all, of these errors are already corrected. Changes/errors are
in bold print. Those errors that could cause confusion or are considered significant are marked with the symbol Λ.
PROPORTIONALITY OF FIGURES
To help illustrate the concepts discussed
in the text, figures are located
throughout the book. In a few instances,
the locations of the hash marks on an
axis are not exactly proportional. These
figures were drawn in this manner to
avoid clutter and to better present the
concept at hand; the accuracy of the
figures is not compromised.
CHAPTER 1
p. 8 In point #4 at the bottom of the
page, “whereever” should be
spelled “wherever.”
CHAPTER 2
Λ p. 43 In Figure 2-1, the arrows labeled
“Dollars” should be pointed in
the opposite direction. That is,
the “Dollar” arrow should
indicate that funds flow from
“Investors” to the Investment
Banker in panel 2 and to the
Financial Intermediary in panel
3.
CHAPTER 3
Λ p. 108 The value for PMT in the
numerical solution at the bottom
of the page should be 250 rather
than 100.
Λ p. 123 In the lower right corner of
Figure 3-3, result should be
3,121.60 = FV rather than
3,212.60 = PV.
Λ p. 127 The result reported in the far
right column in Figure 3-3
should be 3,121.60 = FV.
CHAPTER 4
p. 170 The portfolio label given in the
title of Figure 4-7 should be
Portfolio WY rather than MY.
p. 176 In the last sentence under point
#3, the word “diversity” should
be “diversify.”
CHAPTER 5
p. 223 In the last sentence of the
second paragraph, “numerator”
should be “denominator.”
p. 225 The numerator in the equation
that shows how to compute the
“Capital gains yield” (in the
middle of the page) should be
Capital gain rather than Captial
gain.
Besley and Brigham
ERRATA SHEET
Λ p. 349 In the second-to-last sentence
p. 228 In Step 1 in Figure 5-7, the above Equation 8-8, kps should
subscripts given for the expected equal 11.0 rather than 10.3
dividends in Year 1 through
Year 3 should be “super” rather p. 367 In Question 8-3, the titles of the
than “norm.” first two columns should be
written kdT and ks—that is, a
Λ p. 241 The solution given in Appendix lower case k should be used.
C for problem 5-7 assumes that
the interest rate is 8.0 percent CHAPTER 10
rather than 7.0 percent. p. 427 In the first sentence of the third
(last) paragraph in the section
Λ p. 242 The rate given in the problem titled “Dividend Reinvestment
should be 8 percent rather than Plans,” delete the phrase “(now
7 percent. called Florida Progress).”
CHAPTER 6 CHAPTER 11
Λ p. 255 The cash flow time line in p. 476 In the section titled Capital
Figure 6-1 shows the wrong Gains versus Ordinary Income,
cash flows for Years 1-4. The the third sentence in the first
cash flows should be 400, 900, paragraph should be written
1,300, and 1,500 for these years, “… held for one year or
respectively. longer” rather than “… held for
one year of longer.”
CHAPTER 7
Λ p. 294 The computation in the last line p. 492 The underlines in the table
of Table 7-2 should be $10,000 contained in Problem 11-17
= $9,500 + $500 rather than should be moved so that the top
$10,000 = $9,500 - $500. portion is as follows:
p. 295 The third word in the first Jan. 1 Dec. 31
sentence, which is continued Cash $ 7 $ 15
from page 293, should be Mktbl secur. 0 11
installation rather than Net receivables 30 22
installaion. Inventories 53 75
Total CA $ 90 $123
p. 298 In Table 7-4, footnote a, on the Gross FA 75 125
line that shows the tax impact, Less acc depr (25) (35)
“(0.4)” should be positioned Net FA $ 50 $ 90
immediately following the word Total assets $140 $213
“asset” as follows:
CHAPTER 12
Tax impact … asset (0.4) 600 p. 503 In the second sentence in the
last paragraph, change
p. 300 The margin definition for Stand- “whithout” to “without.”
Alone Risk should be written
“The risk an asset would” rather p. 539 The graph referred to in
than “The risk and asset would.” Problem 12-9 is on page 540,
not page 538.
p. 303 The first sentence in the
paragraph before the Scenario
Analysis section should be
written “variable such as
variable costs” rather than
“variable such as variables costs.
CHAPTER 8
p. 345 In the second-to-last paragraph,
the numbering sequence in the
second sentence is incorrect; it
should be 1, 2, 3 rather than 1, 3,
2.