Errata
Introduction to Corporate Finance, Second Edition
Booth/Cleary
ISBN: 978-0-470-16110-4
©2010
Note from the publisher: While every effort was made by the publisher and proofreaders to make this an errorfree text, some errors came to our attention too late in the process to be corrected. Following is a list of required
corrections. These corrections were made in the second printing of the text.
Updated: February 2013
Chapter
Page
Reference
Correction Required
3
100
Question 13
4
127
Table 4-9
5
208
Practice
Problem 63
6
220
Example 6-5
In solution a, (1.25)30 should be (1.025)30
6
238
Example 6-14
In the solutions using financial calculator, the last calculator button that
reads [N]→2.5 should be [I/Y] →2.5
6
239
Example 6-15
In the solutions using financial calculator, the last calculator button that
reads [PV]→2.94% should be [I/Y] →2.94%
8
313
Paragraph 2
In line 6, > should be < and in line 7 “greater” should be ‘less’ than
8
319
Paragraph 4
In line 2, “greater” than should be “less” than
8
335
Practice
Problem 17
Daily returns for ABC should be 5% for Monday and 2% for Thursday
11
456
Question 16
The question should be “What are not traded on the Montreal
Exchange?”
14
586
Question 8
The reference should be to question 7 not 5.
14
586
Question 9
The references should be to questions 7 and 8 not 5 and 6
14
592
Practice
Problem 43
The reference should be to practice problem 42 not 55.
Multiple choice d. should be “decrease” in accounts payable not
“increase”
The amounts in the 2008 column, beginning with the row ‘Components
of Net Liquidated Value’ should be moved down by one row. See
corrected table below.
Parts a. and b. of the problem are missing and should read:
a. If two friends will rent rooms from Alysha for $475 per room, payable
at the end of each month, how much additional money must she pay to
meet her monthly mortgage payments?
b. In two years, Alysha wants to sell the house for a high enough price
to cover the remaining principal amount on the mortgage, and return
her down payment. What is the minimum sale price she should accept?
14
593
Practice
Problem 48
Part b. point 9 should read years “3 to 5” not “3 to 4”
14
594
Practice
Problem 52
The reference should be to practice problem 50 not 49.
15
640
Practice
Problem 28
The reference should be to practice problems 28 to 32.
19
772
Practice
Problem 23
See Practice Problem 16 for more details about the firm discussed.
21
841
Footnote 12
In the last part of the equation, the ‘3’ in front of “D/SL” should be a
multiplication sign (×)
21
863
Last line
22
882
Example 22-1
In the solution, net proceeds should be $10 million not $20 million.
22
885
Lin 9 from the
bottom
The reference to Equation 22-1 should be to Equation 22-6.
24
953
Example 24-4
In the solution to part b, 2/1,176 should be 29/1,176
0.1785 should be 0.4785