ebook download Financial Analysis with Microsoft Excel 8th Edition Timothy R. Mayes - eBook PDF all chapter

Financial Analysis with Microsoft Excel
8th Edition Timothy R. Mayes - eBook

PDF
Go to download the full and correct content document:
https://ebooksecure.com/download/financial-analysis-with-microsoft-excel-ebook-pdf/
More products digital (pdf, epub, mobi) instant
download maybe you interests ...
(eBook PDF) Financial Analysis with Microsoft Excel

2016 8th
http://ebooksecure.com/product/ebook-pdf-financial-analysis-with-
microsoft-excel-2016-8th/
(eBook PDF) Financial Analysis with Microsoft Excel 9th

Edition
http://ebooksecure.com/product/ebook-pdf-financial-analysis-with-
microsoft-excel-9th-edition/
Essentials of Modern Business Statistics with Microsoft

Excel 8th Edition David R. Anderson - eBook PDF
https://ebooksecure.com/download/essentials-of-modern-business-
statistics-with-microsoft-excel-ebook-pdf-2/
Bayesian Analysis with Excel and R 1st Edition Conrad

Carlberg - eBook PDF
https://ebooksecure.com/download/bayesian-analysis-with-excel-
and-r-ebook-pdf/
(eBook PDF) Essentials of Modern Business Statistics
with Microsoft Excel 8th Edition
http://ebooksecure.com/product/ebook-pdf-essentials-of-modern-
business-statistics-with-microsoft-excel-8th-edition/
(eBook PDF) Modern Business Statistics with Microsoft

Office Excel 6th Edition
http://ebooksecure.com/product/ebook-pdf-modern-business-
statistics-with-microsoft-office-excel-6th-edition/
(eBook PDF) Modern Business Statistics, with Microsoft

Office Excel 4th Edition
http://ebooksecure.com/product/ebook-pdf-modern-business-
statistics-with-microsoft-office-excel-4th-edition/
(eBook PDF) GO! with Microsoft Excel 2013 Comprehensive

by Shelley Gaskin
http://ebooksecure.com/product/ebook-pdf-go-with-microsoft-
excel-2013-comprehensive-by-shelley-gaskin/
(eBook PDF) Statistics for Managers Using Microsoft

Excel 8th Global Edition
http://ebooksecure.com/product/ebook-pdf-statistics-for-managers-
using-microsoft-excel-8th-global-edition/
Mayes
Financial Analysis with Microsoft® Excel®
8th Edition
Financial Analysis
with Microsoft Excel
® ®
2016
Timothy R. Mayes
8th Edition
Financial Analysis
with Microsoft Excel
® ®
2016
2016
8th Edition
To register or access your online learning solution or purchase materials
for your course, visit www.cengagebrain.com.
Timothy R. Mayes
Financial Analysis
with Microsoft® Excel®
EIGHTH EDITION
Timothy R. Mayes
Metropolitan State College of Denver
Australia • Brazil • Mexico • Singapore • United Kingdom • United States

Financial Analysis with Microsoft® Excel®, © 2018, 2015 Cengage Learning®
Eighth Edition
Unless otherwise noted, all content is © Cengage
Timothy R. Mayes
Microsoft Excel: Microsoft Excel is a registered trademark of Microsoft
Corporation. 2014 Microsoft
SVP, GM Social Science and Qualitative Business: ALL RIGHTS RESERVED. No part of this work covered by the copyright
Erin Joyner herein may be reproduced or distributed in any form or by any means,
except as permitted by U.S. copyright law, without the prior written
Executive Product Director: Mike Schenk
permission of the copyright owner.
Sr. Product Team Manager: Joe Sabatino
For product information and technology assistance, contact us at
Project Manager: Julie Dierig Cengage Learning Customer & Sales Support, 1-800-354-9706.
Content Developer: Tara Slagle,

For permission to use material from this text or product,
MPS North America LLC submit all requests online at www.cengage.com/permissions.
Further permissions questions can be emailed to
Product Assistant: Renee Schnee permissionrequest@cengage.com.
Sr. Marketing Manager: Nate Anderson

Library of Congress Control Number: 2017934413
Manufacturing Planner: Kevin Kluck
ISBN: 978-1-337-29804-9
Intellectual Property Analysts: Brittani Morgan and
Ashley Maynard
Cengage Learning
Intellectual Property Project Manager: 20 Channel Center Street
Kathryn Kucharek Boston, MA 02210
Art and Cover Direction, Production Management, USA

and Composition: Lumina Datamatics Inc.
Cengage Learning is a leading provider of customized learning
Sr. Art Director: Michelle Kunkler
solutions with employees residing in nearly 40 different
Cover Image: Cover Screenshots are used with countries and sales in more than 125 countries around the
permission from Microsoft Corporation, world. Find your local representative at
Microsoft Excel® is a registered trademark www.cengage.com/global
of Microsoft Corporation.
Cengage Learning products are represented in Canada by
© 2016 Microsoft.
Nelson Education, Ltd.
To learn more about Cengage Learning Solutions, visit

www.cengage.com.
Purchase any of our products at your local college store or at our

preferred online store www.cengagebrain.com.
Printed in the United States of America

Print Number: 01 Print Year: 2017
Contents
Preface xiii
Purpose of the Book xiv
Target Audience xiv
A Note to Students xv
Organization of the Book xv
Outstanding Features xvi
Pedagogical Features xvii
Supplements xvii
Typography Conventions xviii
Changes from the 7th Edition xix
A Note on the Internet xix
Acknowledgments xx
CHAPTER 1 Introduction to Excel 2016 1

Spreadsheet Uses 2
Starting Microsoft Excel 2
Parts of the Excel Screen 3
The File Tab and Quick Access Toolbar 3
The Home Tab 4
The Formula Bar 6
The Worksheet Area 6
Sheet Tabs 7
Status Bar 7
Navigating the Worksheet 8
Selecting a Range of Cells 9
Using Defined Names 9
Entering Text and Numbers 10
Formatting and Alignment Options 11
Formatting Numbers 13
Adding Borders and Shading 14
Entering Formulas 14
Copying and Moving Formulas 17
Mathematical Operators 18
Parentheses and the Order of Operations 18
iii
Contents
Using Excel’s Built-In Functions 20

Using the Insert Function Dialog Box 21
“Dot Functions” in Excel 2016 23
Using User-Defined Functions 24
Creating Graphics 26
Creating Charts in a Chart Sheet 26
Creating Embedded Charts 27
Formatting Charts 28
Changing the Chart Type 29
Creating Sparkline Charts 31
Printing 32
Using Excel with Other Applications 33
Quitting Excel 34
Best Practices for Spreadsheet Models 35
Summary 36
Problems 37
Internet Exercise 40
CHAPTER 2 The Basic Financial Statements 41

The Income Statement 42
Building an Income Statement in Excel 42
The Balance Sheet 47
Building a Balance Sheet in Excel 47
Improving Readability: Custom Number Formats 49
Common-Size Financial Statements 52
Creating Common-Size Income Statements 52
Creating a Common-Size Balance Sheet 54
Building a Statement of Cash Flows 55
Using Excel’s Outliner 60
Common-Size Statement of Cash Flows 62
Summary 65
Problems 66
CHAPTER 3 Financial Statement Analysis Tools 69

Liquidity Ratios 70
The Current Ratio 71
The Quick Ratio 72
iv
Contents
Efficiency Ratios 73
Inventory Turnover Ratio 73
Accounts Receivable Turnover Ratio 74
Average Collection Period 74
Fixed Asset Turnover Ratio 75
Total Asset Turnover Ratio 76
Leverage Ratios 77
The Total Debt Ratio 77
The Long-Term Debt Ratio 78
The Long-Term Debt to Total Capitalization Ratio 78
The Debt to Equity Ratio 79
The Long-Term Debt to Equity Ratio 80
Coverage Ratios 80
The Times Interest Earned Ratio 80
The Cash Coverage Ratio 81
Profitability Ratios 82
The Gross Profit Margin 82
The Operating Profit Margin 83
The Net Profit Margin 83
Return on Total Assets 84
Return on Equity 84
Return on Common Equity 85
DuPont Analysis 85
Analysis of EPI’s Profitability Ratios 87
Financial Distress Prediction 88
The Original Z-Score Model 88
The Z-Score Model for Private Firms 90
Using Financial Ratios 90
Trend Analysis 90
Comparing to Industry Averages 91
Company Goals and Debt Covenants 93
Automating Ratio Analysis 93
Economic Profit Measures of Performance 95
Summary 98
Problems 101
CHAPTER 4 The Cash Budget 103

The Worksheet Area 105
Using Date Functions 105
v
Contents
Calculating Text Strings 106

Sales and Collections 107
Purchases and Payments 109
Collections and Disbursements 110
Calculating the Ending Cash Balance 112
Repaying Short-Term Borrowing 114
Using the Cash Budget for What-If Analysis 115
The Scenario Manager 117
Adding Interest and Investment of Excess Cash 121
Calculating Current Borrowing 123
Using the Formula Auditing Tools to Avoid Errors 123
Calculating Current Investing 127
Working Through the Example 128
Summary 131
Problems 133
CHAPTER 5 Financial Statement Forecasting 139

The Percent of Sales Method 140
Forecasting the Income Statement 140
Forecasting Assets on the Balance Sheet 144
Forecasting Liabilities on the Balance Sheet 146
Discretionary Financing Needed 147
Using Iteration to Eliminate DFN 149
Other Forecasting Methods 152
Linear Trend Extrapolation 152
Regression Analysis 156
Statistical Significance 160
Summary 163
Problems 164
Internet Exercises 166
CHAPTER 6 Forecasting Sales with Time Series Methods 167

Time Series Decomposition 168
Smoothing a Time Series with Moving Averages 169
Isolating the Seasonality of a Time Series 171
Extracting the Irregular Component 172
Time Series Forecasting Techniques 173
Measuring Forecast Errors 174
Exponential Smoothing Methods 174
vi
Contents
Simple Exponential Smoothing 175

Holt’s Linear Trend Exponential Smoothing Model 177
Forecasting Time Series with Both Trend and Seasonality 179
Holt-Winters Additive Seasonal Model 180
Using the Built-in ETS Model 182
Holt-Winters Multiplicative Seasonal Model 184
Time Series Forecasting Using Regression Analysis 186
Forecasting the Trend Using Regression 186
Using Seasonal Dummy Variables to Account for Seasonality 188
Summary 191
Problems 192
CHAPTER 7 Break-Even and Leverage Analysis 195

Break-Even Points 196
Calculating Break-Even Points in Excel 197
Other Break-Even Points 199
Using Goal Seek to Calculate Break-Even Points 201
Leverage Analysis 202
The Degree of Operating Leverage 203
The Degree of Financial Leverage 205
The Degree of Combined Leverage 207
Extending the Example 208
Linking Break-Even Points and Leverage Measures 209
Summary 210
Problems 212
CHAPTER 8 The Time Value of Money 215

Future Value 216
Using Excel to Find Future Values 217
Present Value 218
Annuities 219
Present Value of an Annuity 220
Future Value of an Annuity 222
Solving for the Annuity Payment 224
Solving for the Number of Periods in an Annuity 225
Solving for the Interest Rate in an Annuity 226
Deferred Annuities 228
vii
Contents
Graduated Annuities 230

Present Value of a Graduated Annuity 230
Future Value of a Graduated Annuity 233
Solving for the Graduated Annuity Payment 234
Uneven Cash Flow Streams 234
Solving for the Yield in an Uneven Cash Flow Stream 236
Nonannual Compounding Periods 237
Continuous Compounding 241
Summary 242
Problems 243
CHAPTER 9 Common Stock Valuation 247

What Is Value? 248
Fundamentals of Valuation 249
Determining the Required Rate of Return 250
A Simple Risk Premium Model 251
CAPM: A More Scientific Model 251
Valuing Common Stocks 254
The Constant-Growth Dividend Discount Model 255
The Two-Stage Growth Model 260
Three-Stage Growth Models 262
Alternative Discounted Cash Flow Models 266
The Earnings Model 266
The Free Cash Flow Model 270
Relative Value Models 273
Preferred Stock Valuation 275
Summary 277
Problems 278
CHAPTER 10 Bond Valuation 283

Bond Valuation 284
Valuing Bonds between Coupon Dates 286
Using Excel’s Advanced Bond Functions 288
Bond Return Measures 291
Current Yield 291
Yield to Maturity 292
viii
Contents
Yield to Call 294

Returns on Discounted Debt Securities 296
The U.S. Treasury Yield Curve 298
Bond Price Sensitivities 300
Changes in the Required Return 300
Changes in Term to Maturity 302
Comparing Two Bonds with Different Maturities 305
Comparing Two Bonds with Different Coupon Rates 307
Duration and Convexity 308
Duration 308
Modified Duration 310
Visualizing the Predicted Price Change 311
Convexity 313
Summary 315
Problems 318
CHAPTER 11 The Cost of Capital 321

The Appropriate Hurdle Rate 322
The Weighted Average Cost of Capital 323
Determining the Weights 324
WACC Calculations in Excel 325
Calculating the Component Costs 326
The Cost of Common Equity 327
The Cost of Preferred Equity 328
The Cost of Debt 329
Using Excel to Calculate the Component Costs 330
The After-Tax Cost of Debt 330
The Cost of Preferred Stock 332
The Cost of Common Stock 332
The Role of Flotation Costs 333
Adding Flotation Costs to Our Worksheet 334
The Cost of Retained Earnings 335
The Marginal WACC Curve 336
Finding the Break-Points 336
Creating the Marginal WACC Chart 340
Summary 342
Problems 342
ix
Contents
CHAPTER 12 Capital Budgeting 347

Estimating the Cash Flows 348
The Initial Outlay 349
The Annual After-Tax Operating Cash Flows 350
The Terminal Cash Flow 351
Estimating the Cash Flows: An Example 352
Calculating the Relevant Cash Flows 357
Making the Decision 358
The Payback Method 359
The Discounted Payback Period 361
Net Present Value 363
The Profitability Index 365
The Internal Rate of Return 366
Problems with the IRR 367
The Modified Internal Rate of Return 369
Sensitivity and Scenario Analysis 372
NPV Profile Charts 372
Scenario Analysis 373
The Optimal Capital Budget 376
Optimal Capital Budget without Capital Rationing 376
Optimal Capital Budget under Capital Rationing 378
Other Techniques 383
Summary 383
Problems 384
CHAPTER 13 Risk and Capital Budgeting 389

Review of Some Useful Statistical Concepts 390
The Expected Value 390
Measures of Dispersion 392
Using Excel to Measure Risk 395
The Freshly Frozen Fish Company Example 395
Introducing Uncertainty 399
Sensitivity Analysis 399
Scenario Analysis 404
Calculating the Expected NPV from the Scenarios 406
Calculating the Variance and Standard Deviation 407
Calculating the Probability of a Negative NPV 409
Monte Carlo Simulation 410
The Risk-Adjusted Discount Rate Method 417
The Certainty-Equivalent Approach 418
x
Contents
Summary 420
Problems 422
CHAPTER 14 Portfolio Statistics and Diversification 425

Portfolio Diversification Effects 426
Determining Portfolio Risk and Return 428
Portfolio Standard Deviation 429
Changing the Weights 432
Portfolios with More than Two Securities 434
Creating a Variance/Covariance Matrix 434
Calculating the Portfolio Standard Deviation 438
The Efficient Frontier 439
Locating Portfolios on the Efficient Frontier in Excel 440
Charting the Efficient Frontier 443
The Capital Market Line 445
Charting the Capital Market Line 448
Identifying the Market Portfolio 449
Utility Functions and the Optimal Portfolio 452
Charting Indifference Curves 452
The Capital Asset Pricing Model 454
The Security Market Line 455
Summary 457
Problems 458
CHAPTER 15 Writing User-Defined Functions with VBA 463

What Is a Macro? 464
Two Types of Macros 464
The Visual Basic Editor 466
The Project Explorer 467
The Code Window 468
The Parts of a Function 468
Writing Your First User-Defined Function 469
Writing More Complicated Functions 473
Variables and Data Types 473
The If-Then-Else Statement 475
Looping Statements 478
Using Worksheet Functions in VBA 481
Using Optional Arguments 482
xi
Contents
Using ParamArray for Unlimited Arguments 483

Debugging VBA Code 484
Breakpoints and Code Stepping 484
The Watch Window 485
The Immediate Window 486
Creating Excel Add-Ins 487
Best Practices for VBA 488
Summary 489
Problems 490
CHAPTER 16 Analyzing Datasets with Tables and Pivot Tables 493

Creating and Using an Excel Table 494
Removing Duplicate Records from the Table 496
Filtering the Table 497
Sorting and Filtering Numeric Fields 498
Structured Referencing for Formulas in Tables 500
Using Get & Transform 501
Cleaning the Dataset 503
An Example Data Query 503
Using Pivot Tables 505
Creating a Pivot Table 505
Formatting the Pivot Table 507
Rearranging the Pivot Table and Adding Fields 510
Transforming the Data Field Presentation 511
Calculations in Pivot Tables 512
Pivot Tables for Financial Statements 513
Grouping Data by Date 515
Using Pivot Charts to Show Trends Over Time 517
Displaying Multiple Subtotals 518
Using Calculated Fields for Financial Ratios 519
Filtering Data with Slicers and Timelines 521
Extracting Data from a Pivot Table 522
Summary 523
Problems 524
APPENDIX Directory of User-Defined Functions in

FameFncs.xlam 529
INDEX 533
xii
Preface
Electronic spreadsheets have been available for microcomputers since the introduction of
VisiCalc® for the Apple I in June 1979. The first version of Lotus 1-2-3® in January 1983
convinced businesses that the IBM PC was a truly useful productivity-enhancing tool.
Today, any student who leaves business school without at least basic spreadsheet skills is
truly at a disadvantage. Much as earlier generations had to be adept at using a slide rule or
financial calculator, today’s manager needs to be proficient in the use of a spreadsheet.
International competition means that companies must be as efficient as possible. No longer
can managers count on having a large staff of “number crunchers” at their disposal.
Microsoft first introduced Excel in 1985 for the Apple Macintosh and showed the world that
spreadsheets could be both powerful and easy to use, not to mention fun. Excel 2.0 was
introduced to the PC world in 1987 for Microsoft Windows version 1.0, where it enjoyed
something of a cult following. With the introduction of version 3.0 of Windows, sales of
Excel exploded so that today it is the leading spreadsheet on the market.
As of this writing, Excel 2016 (also known as Excel version 16) is the current version.
Unlike Excel 2007, which introduced the Ribbon interface, Excel 2016 is more evolutionary
than revolutionary. The changes are mostly cosmetic, though the addition of Get &
Transform is a truly valuable new feature (see Chapter 16). While the book has been written
with the current version in mind, it can be used with older versions, if allowances are made
for minor interface differences.
The user interface has always been different on the Apple Mac, but Excel 2016 for Mac
supports virtually all of the features discussed in this book (the Analysis ToolPak add-in was
finally added in this version). The major missing features are pivot charts and the Get &
xiii
Preface
Transform tools. Both of those features are used in Chapter 16, but Get & Transform is also
used in Chapter 10 to get yield curve data from the U.S. Treasury Web site. Mac users can
access the yield curve data by using the From Web tool in Get External Data instead. I have
made a document, Fame 8e Guide for Mac Users.pdf, that is available on the Financial
Analysis with Microsoft Excel, 8th ed. Instructor Companion Web site.
Purpose of the Book

Financial Analysis with Microsoft Excel, 8th ed. was written to demonstrate useful
spreadsheet techniques and tools in a financial context. This allows readers to see the
material in a way with which they are familiar. For students just beginning their education in
finance, the book provides a thorough explanation of all of the concepts and equations that
are usually covered. In other words, it is a corporate finance textbook, but it uses Excel
instead of financial calculators.
Students with no prior experience with spreadsheets will find that using Excel is very
intuitive, especially if they have used other Windows applications. For these students,
Financial Analysis with Microsoft Excel, 8th ed. will provide a thorough introduction to the
use of spreadsheets from basic screen navigation skills to building fairly complex financial
models. I have found that even students with good spreadsheet skills have learned a great
deal more about using Excel than they expected.
Finally, I feel strongly that providing pre-built spreadsheet templates for students to use is a
disservice. For this reason, this book concentrates on spreadsheet building skills. I believe
that students can gain valuable insights and a deeper understanding of financial analysis by
actually building their own spreadsheets. By creating their own spreadsheets, students will
have to confront many issues that might otherwise be swept under the carpet. It continually
amazes me how thankful students are when they are actually forced to think rather than just
to “plug and go.” For this reason the book concentrates on spreadsheet building skills
(though all of the templates are included for instructors) so that students will be encouraged
to think and truly understand the problems on which they are working.
Target Audience
Financial Analysis with Microsoft Excel is aimed at a wide variety of students and
practitioners of finance. The topics covered generally follow those in an introductory
financial management course for undergraduates or first-year MBA students. Because of the
emphasis on spreadsheet building skills, the book is also appropriate as a reference for case-
oriented courses in which the spreadsheet is used extensively. I have been using the book in
xiv
Organization of the Book
my Financial Modeling course since 1995, and students consistently say that it is the most
useful course they have taken. A sizable number of my former students have landed jobs due
to their superior spreadsheet skills.
I have tried to make the book complete enough that it may also be used for self-paced
learning, and, if my e-mail is any guide, many have successfully taken this route. I assume,
however, that the reader has some familiarity with the basic concepts of accounting and
statistics. Instructors will find that their students can use this book on their own time to learn
Excel, thereby minimizing the amount of class time required for teaching the rudiments of
spreadsheets. Practitioners will find that the book will help them transfer skills from other
spreadsheets to Excel and, at the same time, refresh their knowledge of corporate finance.
A Note to Students
As I have noted, this book is designed to help you learn finance and understand spreadsheets
at the same time. Learning finance alone can be a daunting task, but I hope that learning to
use Excel at the same time will make your job easier and more fun. Be sure to experiment
with the examples by changing numbers and creating charts.
You will likely find that learning the material and skills presented is more difficult if you do
not work the examples presented in each chapter. While this will be somewhat time
consuming, I encourage you to work along with, rather than just read, the book as each
example is discussed. Further, I suggest that you try to avoid the trap of memorizing Excel
formulas. Instead, try to understand the logic of the formula so that you can more easily
apply it in other, slightly different, situations in the future.
Make sure that you save your work often, and keep a current backup.
Organization of the Book

Financial Analysis with Microsoft Excel, 8th ed. is organized along the lines of an
introductory financial management textbook. The book can stand alone or be used as an
adjunct to a regular text, but it is not “just a spreadsheet book” and shouldn’t be treated as a
cookbook with recipes. In most cases, topics are covered at the same depth as the material in
conventional textbooks; in many cases, the topics are covered in greater depth. For this
reason, I believe that Financial Analysis with Microsoft Excel, 8th ed. can be used as a
comprehensive primary text. The book is organized as follows:
• Chapter 1: Introduction to Excel 2016
• Chapter 2: The Basic Financial Statements
xv
Preface
• Chapter 3: Financial Statement Analysis Tools

• Chapter 4: The Cash Budget
• Chapter 5: Financial Statement Forecasting
• Chapter 6: Forecasting Sales with Time Series Methods
• Chapter 7: Break-Even and Leverage Analysis
• Chapter 8: The Time Value of Money
• Chapter 9: Common Stock Valuation
• Chapter 10: Bond Valuation
• Chapter 11: The Cost of Capital
• Chapter 12: Capital Budgeting
• Chapter 13: Risk and Capital Budgeting
• Chapter 14: Portfolio Statistics and Diversification
• Chapter 15: Writing User-Defined Functions with VBA
• Chapter 16: Analyzing Datasets with Tables and Pivot Tables
• Appendix: Directory of User-Defined Functions in FameFncs.xlam
Extensive use of built-in functions, charts, and other tools (e.g., Scenario Manager and
Solver) throughout the book encourages a much deeper exploration of the models presented
than do more traditional methods. Questions such as, “What would happen if...” are easily
answered with the tools and techniques taught in this book.
Outstanding Features
The most outstanding feature of Financial Analysis with Microsoft Excel, 8th ed. is its use of
Excel as a learning tool rather than just a fancy calculator. Students using the book will be
able to demonstrate to themselves how and why things are the way they are. Once students
create a worksheet, they understand how it works and the assumptions behind the
calculations. Thus, unlike the traditional “template” approach, students gain a deeper
understanding of the material. In addition, the book greatly facilitates the professors’ use of
spreadsheets in their courses.
The text takes a self-teaching approach used by many other “how-to” spreadsheet books, but
it provides opportunities for much more in-depth experimentation than the competition. For
xvi
Outstanding Features
example, scenario analysis is an often recommended technique, but it is rarely demonstrated

in any depth. This book uses the tools that are built into Excel to greatly simplify
computation-intensive techniques, eliminating the boredom of tedious calculation. Other
examples include regression analysis, linear and nonlinear programming, and Monte Carlo
simulation. The book encourages students to actually use the tools that they have learned
about in their statistics and management science classes.
Pedagogical Features
Financial Analysis with Microsoft Excel, 8th ed. begins by teaching the basics of Excel.
Then, the text uses Excel to build the basic financial statements that students encounter in all
levels of financial management courses. This coverage then acts as a “springboard” into
more advanced material such as performance evaluation, forecasting, valuation, capital
budgeting, and modern portfolio theory. Each chapter builds upon the techniques learned in
prior chapters so that the student becomes familiar with Excel and finance at the same time.
This type of approach facilitates the professor’s incorporation of Excel into a financial
management course since it reduces, or eliminates, the necessity of teaching spreadsheet
usage in class. It also helps students to see how this vital “tool” is used to solve the financial
problems faced by practitioners.
The chapters are organized so that a problem is introduced, solved by traditional methods,
and then solved using Excel. I believe that this approach relieves much of the quantitative
complexity while enhancing student understanding through repetition and experimentation.
This approach also generates interest in the subject matter that a traditional lecture cannot
(especially for nonfinance business majors who are required to take a course in financial
management). Once they are familiar with Excel, my students typically enjoy using it and
spend more time with the subject than they otherwise would. In addition, since charts are
used extensively (and are created by the student), the material may be better retained.
A list of learning objectives precedes each chapter, and a summary of the major Excel
functions discussed in the chapter is included at the end. In addition, each chapter contains
homework problems, and many include Internet Exercises that introduce students to sources
of information on the Internet.
Supplements
The Instructor’s Manual and other resources, available online, contain the following:
(These materials are available to registered instructors at the Instructor Companion Web site
for Financial Analysis with Microsoft Excel, 8th ed., www.cengagebrain.com).
• The completed worksheets with solutions to all problems covered in the text. Having this
material on the Instructor Companion Web site (www.cengagebrain.com) allows the
instructor to easily create transparencies or give live demonstrations via computer projec-
tions in class without having to build the spreadsheets from scratch.
xvii
Preface
• Additional Excel spreadsheet problems for each chapter that relate directly to the con-
cepts covered in that chapter. Each problem requires the student to build a worksheet to
solve a common financial management problem. Often the problems require solutions in
a graphical format.
• Complete solutions to the in-text homework problems and those in the Instructor’s Manual
and on the Instructor Companion Web site, along with clarifying notes on techniques used.
• An Excel add-in program that contains some functions that simplify complex calcula-
tions such as the two-stage common stock valuation model and the payback period,
among many others (see the Appendix for a complete listing of the functions). Also
included is an add-in program for performing Monte-Carlo simulations discussed exten-
sively in Chapter 13, and an add-in to create “live” variance/covariance matrices. These
add-ins are available on the Web site.
Typography Conventions
The main text of this book is set in the 10-point Times New Roman True Type font. Text or
numbers that readers are expected to enter are set in the 10 point Courier New True Type
font.
The names of built-in functions are set in small caps and boldface. Function arguments can
be either required or optional. Required inputs are set in small caps and are italicized and
boldface. Optional inputs are set in small caps and italicized. As an example, consider the PV
function (introduced in Chapter 8):
PV(RATE, NPER, PMT, FV, TYPE)
In this example, PV is the name of the function, RATE, NPER, and PMT, are the required
arguments, while FV and TYPE are optional.
In equations and the text, equation variables (which are distinct from function arguments)
are italicized. As an example, consider the PV equation:
FV N
PV = ------------------
N
(1 + i)
I hope that these conventions will help avoid confusion due to similar terms being used in
different contexts.
xviii
A Note on the Internet
Changes from the 7th Edition

The overall organization of the book remains similar, but there have been many changes
throughout the book. All of the chapters have been updated, but the more important changes
include:
Chapter 1—Updated for Excel 2016, including coverage of the new charting interface that
uses buttons for chart elements and panels for formatting.
Chapter 6—This is a completely new chapter covering the use of time series forecasting
techniques for forecasting revenue. It includes a method of decomposing a time series into its
component parts, as well as forecasting techniques that deal with trends and seasonality.
Chapter 8—Added to the coverage of graduated annuities with a discussion of how to
calculate the payment amount. In addition, the existing user-defined functions were
reworked so as to be more consistent with the built-in time value functions.
Chapter 10—Added a method of calculating the convexity of a bond on any date using the
built-in PRICE function. This method is simple but is still a close approximation. I have also
updated the FAME_CONVEXITY function to calculate exact convexity on any date.
Additionally, I have used the Get & Transform (see below) tools to query the U.S. Treasury
Web site for data used to create the yield curve.
Chapter 16—Added coverage of the new Get & Transform tool that is available on the Data
tab. This is a very powerful tool that is used to query database files, Excel worksheets, and
Web sites. It is essentially a built-in ETL (Extract, Transform, and Load) tool that makes
processing internal or external data much easier than before.
In addition, I swapped the positions of Chapters 3 and 4 so that coverage of financial ratios now
follows coverage of financial statements.
A Note on the Internet

I have tried to incorporate Internet Exercises into those chapters where the use of the Internet
is applicable. In many cases, the necessary data simply is not available to the public or very
difficult to obtain online (e.g., cash budgeting), so some chapters do not have Internet
Exercises. For those chapters that do, I have tried to describe the steps necessary to obtain the
data—primarily from either the SEC’s Edgar System or Yahoo! Finance. It should be noted
that Web sites change frequently and these instructions and URLs may change in the future. I
chose the Edgar System and Yahoo! Finance because I believe that these sites are the least
likely to undergo severe changes and/or disappear completely. In many cases, there are
alternative sites from which the data can be obtained if it is no longer available from the given
site. All Excel spreadsheets for students’ and instructors’ use (as referenced in the book) are
available at the Student and Instructor Companion Web sites (www.cengagebrain.com).
xix
Preface
Acknowledgments
All books are collaborative projects, with input from more than just the listed authors. This
is true in this case as well. I wish to thank those colleagues and students who have reviewed
and tested the book to this point. Any remaining errors are my sole responsibility, and they
may be reported to me by e-mail.
For this edition, I would like to thank two of my colleagues at Metro State: Qiongqi Xiao
and Su-Jane Chen were very kind to review chapters or sections of chapters. Douglas Jordan
of Sonoma State University also provided valuable input, particularly the suggestion of
swapping Chapters 3 and 4. The input of the anonymous reviewers who responded to
surveys is also greatly appreciated. I would also like to thank Debra Dalgleish, an author of
several books on pivot tables, Microsoft Excel MVP, and a blogger at blog.contextures.com,
for answering some technical questions about pivot tables.
I would also like to thank the several reviewers who spent a great deal of time and effort reading
over the previous editions. These reviewers are Tom Arnold of the University of Richmond,
Denise Bloom of Viterbo University, David Suk of Rider College, Mark Holder of Kent State
University, Scott Ballantyne of Alvernia College, John Stephens of Tri State University, Jong Yi of
California State University Los Angeles, and Saiyid Islam of Virginia Tech. I sincerely appreciate
their efforts. In particular, I would like to thank Nancy Jay of Mercer University–Atlanta for her
scrupulous editing of the chapters and homework problems in the first three editions.
Many people long ago provided invaluable help on the first and second editions of this text,
and their assistance is still appreciated. Professional colleagues include Ezra Byler, Anthony
Crawford, Charles Haley, David Hua, Stuart Michelson, Mohammad Robbani, Gary McClure,
and John Settle. In addition, several of my now former students at Metropolitan State
University of Denver were helpful—most especially, Peter Ormsbee, Marjo Turkki, Kevin
Hatch, Ron LeClere, Christine Schouten, Edson Holland, Mitch Cohen, and Theresa
Lewingdon.
Finally, I wish to express my gratitude to Joe Sabatino (Senior Product Team Manager), Julie
Dierig (Project Manager), and Tara Slagle (Senior Content Project Manager) of the Cengage
Learning team. Without their help, confidence, and support, this book would never have
been written. To anybody I have forgotten, I heartily apologize.
I encourage you to send your comments and suggestions, however minor they may seem to
you, to mayest@msudenver.edu.
Timothy R. Mayes
December 2016
xx
CHAPTER 1 Introduction to Excel 2016
After studying this chapter, you should be able to:

1. Explain the basic purpose of a spreadsheet program.
2. Identify the various components of the Excel screen.
3. Navigate the Excel worksheet (entering, correcting, and moving data within
the worksheet).
4. Explain the purpose and usage of Excel’s built-in functions and user-defined
functions.
5. Create graphics and know how to print and save files in Excel.
The term “spreadsheet” covers a wide variety of elements useful for quantitative analysis of
all kinds. Essentially, a spreadsheet is a simple tool consisting of a matrix of cells that can
store numbers, text, or formulas. The spreadsheet’s power comes from its ability to
recalculate results as you change the contents of other cells. No longer does the user need to
do these calculations by hand or on a calculator. Instead, with a properly constructed
spreadsheet, changing a single number (say, a sales forecast) can result in literally thousands
of automatic changes in the model. The freedom and productivity enhancement provided by
modern spreadsheets present an unparalleled opportunity for learning financial analysis.
1
CHAPTER 1: Introduction to Excel 2016
Spreadsheet Uses
Spreadsheets today contain built-in analytical capabilities previously unavailable in a single
package. Years ago, users often had to learn a variety of specialized software packages to do
any relatively complex analysis. With the newest versions of Microsoft Excel, users can
perform tasks ranging from the routine maintenance of financial statements to multivariate
regression analysis to Monte Carlo simulations of hedging strategies.
It is impossible to enumerate all of the possible applications for spreadsheets. You should
keep in mind that spreadsheets are useful not only for financial analysis but also for any type
of quantitative analysis whether your specialty is in marketing, management, engineering,
statistics, or economics. For that matter, a spreadsheet can also prove valuable for personal
uses. With Excel, it is a fairly simple matter to build a spreadsheet to monitor your
investment portfolio, plan for retirement, experiment with various mortgage options when
buying a house, create and maintain a mailing list, and so on. The possibilities are quite
literally endless. The more comfortable you become with the spreadsheet, the more uses you
will find. Using a spreadsheet can help you find solutions that you never would have
imagined on your own. Above all, feel free to experiment and try new things as you gain
more experience working with spreadsheet programs, particularly Excel.
The above is not meant to suggest that Excel is the only analytical tool you’ll ever need. For
example, Excel is not meant to be a relational database, though it has some tools that allow it
to work well for small databases (see Chapter 16). For bigger projects, however, Excel can
serve as a very effective “front-end” interface to a database. It also isn’t a complete
replacement for a dedicated statistics program, though it can work well for many statistical
problems. Although Excel can be made to do just about anything, it isn’t always the best tool
for the job. Still, it may well be the best tool that you or your colleagues know how to use.
Starting Microsoft Excel

Start Excel by double-clicking on the program’s icon. The location of the Excel icon will
depend on the organization of your system. You may have the Excel icon (at left) on the
desktop or in the taskbar. Otherwise, you can start Excel by clicking the Start button and then
clicking the Excel 2016 tile, or type Excel into the search box at the bottom of the Start
Excel 2016 Icon
menu. If you have Windows 10 and a microphone, then you can even tell Cortana to “start
Excel 2016.”
For easier access, you may wish to create a Desktop or Taskbar shortcut. To do this, click on
the Excel icon in the All Apps menu and drag the icon to the Desktop or Taskbar. Remember
that a shortcut is not the program itself, so you can safely delete the shortcut if you later
decide that you no longer need it.
2
Parts of the Excel Screen

If you have used any recent version of Excel, then you will be familiar with most of the user
interface in Excel 2016. In Figure 1-1, note the labeled parts of the Excel screen. We will
examine most of these parts separately. Please refer to Figure 1-1 as you read through each
of the sections that follow.
FIGURE 1-1
MICROSOFT EXCEL 2016
The File Tab and Quick Access Toolbar

The File tab in Excel 2016 is similar to the File menu in most other Windows programs. It
can be opened either by clicking the tab or by pressing Alt-F. Click the File tab when you
need to open, save, print, or create a new file.
The File tab also contains additional functionality. It opens in what is known as Backstage
View, which takes over the entire window. This additional space, compared to a menu, allows
for much more information to be displayed. For example, if you click the Print tab on the left
side, you get access not only to all of the print settings but also to print preview on the same
page. The Info tab is where you can set the document properties (author, keywords, etc.),
inspect the document for hidden data that may reveal private details, encrypt the spreadsheet,
and so on.
3
Finally, the File tab is the pathway to setting the program options. At the bottom of the tabs
on the left you will find a link to Options. This launches the Excel Options dialog box where
you can set all of the available options. It is advisable to go through the Excel Options to
familiarize yourself with some of the things that you can control. While you may not
understand all of the choices, at least you will know where to go when you need to change
something (e.g., the user name, macro security level, or the default file locations).
You also have the ability to customize the Ribbon. Click the File tab, choose Options, and
then select Customize Ribbon in the dialog box. Here you can create new tabs, move buttons
from one tab to another, remove them completely, and even export your customizations so
that others can use them.
The Quick Access toolbar (typically abbreviated as QAT) is located above the File tab and,
by default, provides a button to save the current file as well as the Undo and Redo buttons. If
you regularly use commands that aren’t located on the Home tab, you can easily customize
the Quick Access toolbar to add those commands by right-clicking the QAT and choosing
“Customize Quick Access Toolbar….” The dialog box is self-explanatory. You can also add
or remove commands, such as Print Preview, by clicking the arrow to the right of the QAT.
The Home Tab
FIGURE 1-2
EXCEL 2016 HOME TAB
Immediately below the title bar, Excel displays the various tabs in what is known as the
Ribbon. Tabs are the toolbars that replaced the menus of pre-2007 versions. The Home tab
contains the most commonly used commands, including the Cut, Copy, and Paste buttons,
and the various cell formatting buttons. You can learn what function each button performs by
letting the mouse pointer hover over a button. After a few seconds, a message will appear
that informs you of the button’s function. This message is known as a ToolTip. ToolTips are
used frequently by Excel to help you identify the function of various items on the screen.
Note that several of the buttons (e.g., the Copy and Paste buttons) on the Ribbon have a
downward-pointing arrow. This is a signal that the button has options besides the default
behavior. For example, by clicking the arrow on the Paste button you will find that there are
several choices regarding what to paste (e.g., just the formula, or the value without the
formula). Clicking the upper half of a split button invokes the default purpose.
4
The other tabs are named according to their functionality, and you will quickly learn which
one to choose in order to carry out a command. Table 1-1 shows the other tabs and a short
description of what they do.
TABLE 1-1
OTHER TABS IN THE EXCEL 2016 RIBBON
Tab What It Does
File File management features (open, save, close, print, etc.) and options.
Contains buttons for inserting pivot tables, charts, pictures, shapes,
Insert
text boxes, equations, and other objects.
Has choices that control the look of the worksheet on the screen and
Page Layout when printed. You can change the document theme, the page
margins and orientation, and so on.
This is where to go when you want to insert a formula, create a
Formulas defined name for a cell or range, or use the formula auditing tools to
find errors.
Contains buttons to guide you through getting data from other
sources (such as an Access database, a Web site, or a text file).
Data
Launch tools such as the Scenario Manager, Goal Seek, Solver, and
the Analysis Toolpak.
Here you will find spell check, the thesaurus, and also commands
Review
for working with cell comments and worksheet protection.
Contains commands that control the worksheet views, zoom
View controls, and the visibility of various objects on the screen (such as
gridlines and the formula bar).
Has tools that allow you to access the VBA editor, insert controls
Developer (e.g., dropdown lists), and work with XML. This tab is not visible
by default, but can be enabled in Options.
This is where older Excel add-ins that create custom tool bars and
Add-ins
menus will be located. Not visible unless older add-ins are installed.
Power Pivot is an add-in for certain versions of Excel. It allows you
Power Pivot to work with data files that are much larger than Excel can normally
handle.
Note that another set of tabs will appear when you are working on charts. The Design and
Format tabs contain all of the options that you will need for working with charts (see
“Creating Graphics” on page 26). Furthermore, add-in programs may create additional tabs.
5
The Formula Bar

As you work more in Excel to create financial models, you will find that the formula bar is
one of its most useful features. The formula bar displays information about the currently
selected cell, which is referred to as the active cell. The left part of the formula bar indicates
the name or address of the selected cell (H9 in Figure 1-3). The right part of the formula bar
displays the contents of the selected cell. If the cell contains a formula, the formula bar
displays the formula while the cell itself displays the result of the formula. If text or numbers
have been entered, then the text or numbers are displayed.
FIGURE 1-3
THE EXCEL 2016 FORMULA BAR
The fx button on the formula bar is used to show the Insert Function dialog box. This dialog
box helps you to find and enter functions without having to memorize them. It works the
same as the Insert Function button on the Formulas tab. See page 21 for more information.
The chevron at the right of the formula bar is used to expand the formula bar. This is useful
if you have long formulas that occupy more than one line. You can break long formulas
across multiple lines by pressing Alt+Enter where you want the line to break. If you do this,
then you can expand the formula bar even further by dragging its lower edge.
The Worksheet Area

The worksheet area is where the real work of the spreadsheet is done. The worksheet is a
matrix of cells (1,048,576 rows by 16,384 columns),1 each of which can contain text,
numbers, or formulas. Each cell is referred to by a column letter and a row number. Column
letters (A, B, C, …, XFD) are listed at the top of each column, and row numbers (1, 2, 3, …,
1048576) are listed to the left of each row. The cell in the upper left corner of the worksheet
is therefore referred to as cell A1, the cell immediately below A1 is referred to as cell A2,
the cell to the right of A1 is cell B1, and so on. This naming convention is common to all
spreadsheet programs. If not already, you will become comfortable with it once you have
gained some experience working in Excel.
The active cell can be identified by a solid black border around the cell. Note that the active
cell is not always visible on the screen, but its address is always named in the leftmost
portion of the formula bar. In the lower-right corner is the AutoFill handle (see page 11).
1. This is known as the “big grid” because it is much larger than in pre-2007 versions of Excel, which
only supported up to 65,536 rows and 256 columns.
6
Sheet Tabs
FIGURE 1-4
THE SHEET TABS
Excel worksheets are stored in a format that allows you to combine multiple worksheets into
one file known as a workbook. This allows several related worksheets to be contained in one
file for easy access. The sheet tabs, near the bottom of the screen, enable you to move easily
from one sheet to another in a workbook. You may rename, copy, or delete any existing sheet
or insert a new sheet by right-clicking a sheet tab with the mouse and making a choice from
the resulting menu. You can change the order of the sheet tabs by clicking a tab and dragging
it to a new position, or you can press the Ctrl key (option on Mac) and drag to copy it. To
insert a new worksheet, click the New Sheet button to the right of the last worksheet.
It is easy to do any of these operations on multiple worksheets at once, except for renaming.
Simply click the first sheet and then Ctrl+click each of the others. (You can select a
contiguous group of sheets by selecting the first and then Shift+click the last.) Now, right-
click one of the selected sheets and select the appropriate option from the pop-up menu.
When sheets are grouped, anything you do to one sheet gets done to all. This feature is
useful if, for example, you need to enter identical data into multiple sheets or need to
perform identical formatting on several sheets. To ungroup the sheets, either click on any
nongrouped sheet or right-click a sheet tab and choose Ungroup Sheets from the pop-up
menu. Another feature in Excel 2016 allows you to choose a color for each sheet tab by
right-clicking the tab and choosing a Tab Color from the pop-up menu.
The transport buttons to the left of the sheet tabs allow you to scroll through the list of sheet
tabs. Right-clicking either of these buttons will display a pop-up menu that allows you to
quickly jump to any sheet tab in the workbook. This is especially helpful when you have too
many tabs for them all to be shown.
Status Bar
The status bar, located below the sheet tabs, contains information regarding the current state
of Excel, as well as certain messages. For example, most of the time the only message is
“Ready” indicating that Excel is waiting for input. At other times, Excel may add “Calculate”
to the status bar to indicate that it needs to recalculate the worksheet because of changes. You
can also direct Excel to do certain calculations on the status bar. For example, in Figure 1-5,
Excel is showing the average, count, and sum of the highlighted cells in the worksheet.
7
FIGURE 1-5
THE STATUS BAR
By right-clicking on this area of the status bar, you can also get Excel to calculate the count
of numbers only, the minimum, or the maximum of any highlighted cells. This is useful
when you need a quick calculation that doesn’t need to be in the worksheet.
The right side of the status bar contains buttons to change the view of the worksheet (normal,
page layout, and page break preview) as well as the zoom level.
Navigating the Worksheet

There are two principal ways for moving around within the worksheet area: the arrow keys
and the mouse (or touchpad). For small distances the arrow keys provide an easy method of
changing the active cell, but moving to more distant cells is usually easier with the mouse.
Most keyboards have a separate keypad containing arrows pointing up, down, left, and right.
If yours does not, then the numeric keypad can be used if the Num Lock function is off. You
can use the Tab key to move one cell to the right. The Page Up and Page Down keys also
work as you would expect.
The mouse is even easier to use. When the mouse pointer is over the worksheet area, it will
be in the shape of a fat cross. To change the active cell, move the mouse pointer over the
destination cell and click. To move to a cell that is not currently displayed on the screen,
click on the scroll bars until the cell is visible and then click on it. For example, if the active
cell is A1 and you wish to make A100 the active cell, click on the scroll bar on the right hand
part of the screen until A100 is visible. Move the mouse pointer over cell A100 and click
with the left button. Each click on the scroll bar moves the worksheet up or down one page.
If you wish to move up, click above the thumb. If down, click beneath the thumb. The thumb
(or slider) is the button that moves up and down the scroll bar to indicate your position in the
worksheet. To move more quickly, you can drag the thumb to the desired position.
If you know the name or address of the cell to which you wish to move (for large worksheets
remembering the cell address isn’t easy, but you can use named ranges), use the Go To
command. The Go To command will change the active cell to whatever cell you indicate.
The Go To dialog box can be used by clicking the Find & Select button on the Home tab and
then choosing the Go To… command, by pressing the F5 function key, or by pressing the
Ctrl+G key combination. To move to cell A50, simply press F5, type: A50 in the Reference
box, and then press Enter. You will notice that cell A50 is now highlighted and visible on the
8
Navigating the Worksheet
screen. You can also use Go To to find certain special cells (e.g., the last cell that has data in
it) by pressing the Special… button in the Go To dialog box.
Selecting a Range of Cells

Many times you will need to select more than one cell at a time. For example, you may wish
to apply a particular number format to a whole range of cells, or you might want to clear a
whole range. Because it would be cumbersome to do this one cell at a time, especially for a
large range, Excel allows you to simultaneously select a whole range and perform various
functions on all of the cells at once. The easiest way to select a contiguous range of cells is to
use the mouse. Simply point to the cell in the upper left corner of the range, and click and
drag the mouse until the entire range is highlighted. As you drag the mouse, watch the left
side of the formula bar. Excel will inform you of the number of selected rows and columns.
In addition, the row and column headers will be highlighted for the selected cells.
You can also use the keyboard to select a range. First change the active cell to the upper left
corner of the range to be selected, press and hold down the Shift key, and use the arrow keys
to highlight the entire range. Note that if you release the Shift key while pressing an arrow
key, you will lose the selection. A very useful keyboard shortcut is the Shift+Ctrl+Arrow
(any arrow key will work) combination. This is used to select all of the cells from the active
cell up to, but not including, the first blank cell. For example, if you have 100 numbers in a
column and need to apply a format, just select the first cell and then press Shift+Ctrl+Down
arrow to select them all. This is faster and more accurate than using the mouse.
Often it is also useful to select a discontiguous range (i.e., two or more unconnected ranges)
of cells. To do this, simply select the first range as usual and then hold down the Ctrl key as
you select the other ranges.
Using Defined Names

A named range is a cell, or group of cells, for which you have supplied a name. Named
ranges can be useful in a number of different ways, but locating a range on a big worksheet
is probably the most common use. To name a range of cells, start by selecting the range. For
example, select A1:C5 and then choose Define Name from the Formulas tab. At the top of
the New Name dialog box, enter a name, say MyRange (note that a range name cannot
contain spaces or most special characters). Figure 1-6 shows how the dialog box should
look. Note that the Refers to edit box shows the address to which the name refers.2
2. The name is actually defined as a formula. This is important for some of the more advanced uses of
named ranges. For example, we can use a name to define constants, do calculations, or to create a
reference to a range that grows as data is added.
9
Another random document with
no related content on Scribd:
tribute levied upon the Imghád, in the tax of ten mithkáls or four
Spanish dollars which he levies on each camel-load of foreign
merchandise which enters the town of Ágades (articles of food being
exempt from charge), in a small tribute derived from the salt brought
from Bilma, and in the fines levied on lawless people and marauders,
and often on whole tribes. Thus it is very probable that the expedition
which ʿAbd el Káder undertook immediately after his accession,
against the tribes who had plundered us, enriched him considerably.
As for the inhabitants of Ágades themselves, I was assured that they
do not pay him any tribute at all, but are only obliged to accompany
him on his expeditions. Of course in earlier times, when the
commerce of the town was far greater than at present, and when the
Imghád (who had to provide him with cattle, corn, fruit, and
vegetables) were strictly obedient, his income far exceeded that of
the present day. When taken altogether it is certainly considerably
under twenty thousand dollars. His title is Amanókal, or Amanókal
Imakóren, in Temáshight, Kókoy bére in the Emgédesi, and Babá-n-
Serkí in the Háusa language.
The person second in authority in the town, and in certain respects
the Vizier, is now, and apparently was also in ancient times, the
“kókoy gerégeré” (i.e. master of the courtyard or the interior of the
palace). This is his real indigenous character, while the foreigners,
who regarded him only in his relation to themselves, called him
Sheikh el ʿArab, or, in the Háusa language, Serkí-n-turáwa (the Chief
of the Whites), and this is the title by which he is generally known.
For it was he who had to levy the tax on the merchandise imported
into the town, an office which in former times, when a considerable
trade was carried on, was of great importance. But the chief duty of
the “serkí-n-turáwa,” at the present time, is to accompany annually
the salt-caravan of the Kél-gerés, which supplies the western part of
Middle Sudán with the salt of Bilma, from Ágades to Sókoto, and to
protect it on the road as well as to secure it against exorbitant
exactions on the part of the Fúlbe of Sókoto. For this trouble he
receives one “kántu,” that is to say the eighth part (eight kántu
weighing three Turkish kantars or quintals) of a middle-sized camel-
load, a contribution which forms a considerable income in this
country, probably of from eight to ten thousand Spanish dollars, the
caravan consisting generally of some thousand camels, not all
equally laden, and the kántu of salt fetching in Sudán from five
thousand to seven and eight thousand kurdí or shells, which are
worth from two to three dollars. Under such circumstances those
officers, who at the same time trade on their own account, cannot
but amass considerable wealth. Mohammed Bóro as well as Áshu
are very rich, considering the circumstances of the country.
After having escorted the salt-caravan to Sókoto, and settled the
business with the Emír of this place, the serkí-n-turáwa in former
times had to go to Kanó, where he received a small portion of the six
hundred kurdí, the duty levied on each slave brought to the slave-
market, after which he returned to Ágades with the Kél-gerés that
had frequented the market of Kanó. I had full opportunity, in the
further course of my journey, to convince myself that such is not now
the case; but I cannot say what is the reason of this custom having
been discontinued, though it may be the dangerous state of the road
between Sókoto and Kanó. Mohammed Bóro, the former serkí-n-
turáwa, has still residences as well in Kanó and Zínder as in Sókoto
and Ágades. From what I have said it is clear that at present the
serkí-n-turáwa has much more to do with the Tuarek and Fúlbe than
with the Arabs, and at the same time is a sort of mediator between
Agades and Sókoto. Of the other persons in connection with the
Sultan, the “kókoy kaina” or “bába-n-serkí” (the chief eunuch), at
present Ámagay, the fádawa-n-serkí (the aides-de-camp of the
Sultan), as well as the kádhi or alkáli, and the war-chief Sídi Ghalli, I
have spoken in the diary of my residence in the place.
I have already stated above that the southern part of the town,
which at present is almost entirely deserted, formed the oldest
quarter, while katánga, or “báki-n-bírni,” seems to have been its
northern limit. Within these limits the town was about two miles in
circuit, and when thickly peopled may have contained about thirty
thousand inhabitants; but after the northern quarter was added the
whole town had a circuit of about three miles and a half, and may
easily have mustered as many as fifty thousand inhabitants, or even
more. The highest degree of power seems to have been attained
before the conquest of the town by Mohammed Áskiá in the year
1515, though it is said to have been a considerable and wealthy
place till about sixty years ago (reckoned from 1850), when the
greatest part of the inhabitants emigrated to the neighbouring towns
of Háusa, chiefly Kátsena, Tasáwa, Marádi, and Kanó. The exact
circumstances which brought about this deplorable desertion and
desolation of the place I was not able to learn; and the date of the
event cannot be made to coincide with the period of the great
revolution effected in Middle Sudán by the rising of the Jihádi, “the
Reformer,” ʿOthmán da-n-Fódiye, which it preceded by more than
fifteen years; but it coincides with or closely follows upon an event
which I shall have to dwell upon in the further course of my
proceedings. This is the conquest of Gáo, or Gógo (the former
capital of the Sónghay empire, and which since 1591 had become a
province of the empire of Morocco), by the Tuarek. As we have seen
above that Ágades had evidently been founded as an entrepôt for
the great trade with this most flourishing commercial place on the
Ísa, or Niger, at that time the centre of the gold trade, of course the
ransacking and wholesale destruction of this town could not but
affect in the most serious manner the wellbeing of Agades, cutting
away the very roots through which it received life.
1, House where I lodged; 2, Great Mosque, or Mesállaje; 3, Palace, or Fáda; 4,
Káswa-n-delélti, or Tama-n-lókoy; 5, Káswa-n-rákoma; 6, Katánga; 7, Erárar-n-
zákan; 8, Mohammed Bóro’s house; 9, House of the Kádhi; 10, Well Shedwánka;
11, Pools of Stagnant Water; 12, Kófa-n-Alkáli; 13, Masráta Hogúme; 14, Suburb
of Ben Gottára.
At present I still think that I was not far wrong in estimating the
number of the inhabited houses at from six hundred to seven
hundred, and the population at about seven thousand, though it must
be borne in mind that, as the inhabitants have still preserved their
trading character, a great many of the male inhabitants are always
absent from home, a circumstance which reduces the armed force of
the place to about six hundred. A numerical element, capable of
controlling the estimated amount of the population, is offered by the
number of from two hundred and fifty to three hundred well-bred
boys, who at the time of my visit were learning a little reading and
writing, in five or six schools scattered over the town; for it is not
every boy who is sent to school, but only those belonging to families
in easy circumstances, and they are all about the same age, from
eight to ten years old.
With regard to the names of the quarters of the town, which are
interesting from an historical point of view, I was not able to learn
exactly the application of each of the names; and I am sure very few
even of the inhabitants themselves can now tell the limits of the
quarters, on account of the desolate state of many of them. The
principal names which can be laid down with certainty in the plan are
Masráta, Gobetáren, Gáwa-Ngírsu, Dígi or Dégi, Katánga, Terjemán,
and Arrafía, which comprise the south-western quarter of the town.
The names of the other quarters, which I attempted to lay down on
the plan sent to Government together with my report, I now deem it
prudent to withdraw, as I afterwards found that there was some
uncertainty about them. I therefore collect here, for the information of
future travellers, the names of the other quarters of the place,
besides those mentioned above and marked in the plan—Lárelóg,
Churúd, Hásena, Amaréwuël, Imurdán (which name, I was assured
afterwards, has nothing in common with the name of the tribe of the
Imghád), Tafimáta (the quarter where the tribe of the same name
lived), Yobímme (“yobu-mé” meaning the mouth of the market), Dégi-
n-béne, or the Upper Dégi, and Bosenrára. Kachíyu (not Kachín)
seems to have been originally the name of a pool, as I was assured
that, besides the three ponds still visible, there were formerly seven
others, namely Kudúru, Kachíyu, Chikinéwan, Lángusúgázará,
Kurungúsu, and Rabafáda, this latter in the square of the palace.
The whole ground upon which the town is built (being the edge of
a tableland which coincides with the transition from granite to
sandstone) seems to be greatly impregnated with salt at a certain
depth, of which not only the ponds, but even the wells bear
evidence, two of the three wells still in use having saltish water, and
only that of Shedwánka being, as to taste, free from salt, though it is
still regarded as unwholesome, and all the water used for drinking is
brought from the wells outside the walls. Formerly, it is said, there
were nine wells inside the town.
From what I have said above, it may be concluded that the
commerce of Ágades is now inconsiderable. Its characteristic feature
is that no kind of money whatever is current in the market—neither
gold, nor silver, nor kurdí, nor shells; while strips of cotton, or gábagá
(the Kanúri, and not the Háusa term being employed in this case,
because the small quantity of this stuff which is current is imported
from the north-western province of Bórnu), are very rare, and indeed
form almost as merely nominal a standard as the mithkál.
Nevertheless the value of the mithkál is divided into ten rijáls, or
érjel, which measure means eight drʿa, or cubits, of gábagá. The real
standard of the market, I must repeat, is millet or dukhn (“géro” in
Háusa, “éneli” in Temáshight, Pennisetum typhoïdeum), durra, or
Holcus sorghum, being scarcely ever brought to market. And it is
very remarkable, that with this article a man may buy everything at a
much cheaper rate than with merchandise, which in general fetches
a low price in the place; at least it did so during my stay, when the
market had been well stocked with everything in demand, by the
people who had come along with us. English calico of very good
quality was sold by me at 20 per cent. less than it had been bought
for at Múrzuk. Senna in former times formed an article of export of
some importance; but the price which it fetches on the coast has so
decreased that it scarcely pays the carriage, the distance from the
coast being so very great; and it scarcely formed at all an article in
request here, nor did we meet on our whole journey a single camel
laden with it, though it grows in considerable quantities in the valleys
hereabouts.
Ágades is in no respect a place of resort for wealthy merchants,
not even Arabs, while with regard to Europe its importance at
present consists in its lying on the most direct road to Sókoto and
that part of Sudán. In my opinion it would form for a European agent
a very good and comparatively healthy place from which to open
relations with Central Africa. The native merchants seem only to visit
the markets of Kátsena, Tasáwa, Marádi, Kanó, and Sókoto, and, as
far as I was able to learn, never go to the northern markets of Ghát
or Múrzuk, unless on a journey to Mekka, which several of them
have made. Neither does there seem to exist any intercourse at
present with Gágho, or Gógo, or with Timbúktu; but the Arabs of
Azawád and those parts, when undertaking a pilgrimage, generally
go by way of Ágades.
I must here add, that I did not observe that the people of Ágades
use manna in their food, nor that it is collected in the neighbourhood
of the town; but I did not inquire about it on the spot, not having
taken notice of the passage of Leo relating to it.
My stay in Ágades was too short to justify my entering into detail
about the private life of the people, but all that I saw convinced me
that, although open to most serious censure on the part of the
moralist, it presented many striking features of cheerfulness and
happiness, and nothing like the misery which is often met with in
towns which have declined from their former glory. It still contains
many active germs of national life, which are most gratifying to the
philosophic traveller. The situation, on an elevated plateau, cannot
but be healthy, as the few waterpools, of small dimensions, are
incapable of infecting the air. The disease which I have mentioned in
my diary as prevalent at the time of my sojourn was epidemic.
Besides, it must be borne in mind that the end of the rainy season
everywhere in the tropical regions is the most unhealthy period of the
year.
CHAPTER XIX.
DEPARTURE FROM ÁGADES.—STAY IN TIN-
TÉGGANA.
Wednesday, October 30.—We at length left Ágades. I felt as if I

had enjoyed a glimpse of a totally different world, a new region of
life, many relations of which were as yet obscure to me. Timbúktu,
which was in the background of this novel and living picture, seemed
an almost unattainable object. An acquaintance with it would not fail
to throw light upon this advanced post of Sónghay nationality, and its
state of civilization; but at that time I little expected that it would be
my destiny to dwell a year in that mysterious place, and I had even
reason to doubt the possibility of reaching it from this quarter. All my
thoughts were bent on the south; and although at present retracing
my steps towards the north, yet, as it carried me back to our
headquarters, whence I might soon expect to start for the southern
regions, I regarded it as a step in advance.
But the commencement of the journey was most abortive, and
made me rather regret that I had not spent the day in the town.
Hámma was unable to find some of the asses belonging to the
caravan, for the simple reason that our friend Zúmmuzuk had sold
them; and the whole day was lost, so that we encamped after a
march of scarcely two miles and a half. Here we were joined by
Ibrahím and by a very amiable, intelligent Kél-owí of the name of
Rábbot, who informed me that to the east of the valley Tefárrakad
there were several other valleys not at all inferior to it in exuberance
and variety of vegetation. As the most important among them, he
named to me Ámdegra, Edob, Téwarni, Tíndawén, and Aságatay.
When at length, on Thursday morning, we fairly began our journey,
we followed entirely our old road, Hámma being anxious to get
home; but nevertheless, as the mountains and ridges which
characterize this region now met the eyes from the other side, the
scenery was a good deal varied, and I had frequent opportunities of
completing my map of this part of the country. Besides, we chose our
encampments in new localities; and many little incidents varied our
journey, the most interesting of which was the approach of a party of
five lions in the valley Búdde, when Hámma called us to arms. He,
Rábbot, Mohammed, and I advanced to meet them, but they soon
turned their backs, leaping over the rocky ground towards their
mountain retreat. The lion of Aír does not seem to be a very
ferocious animal, and, like those of all this border-region of the
desert, has no mane—that is to say, as compared with other lions.
The maneless lion of Guzerat is well known, but a similar species
seems also to occur in Sind and Persia. The lion of Central Africa, at
least of Bórnu and Logón, has a beautiful mane; and the skin of a
lion of that region, which I took with me on my journey to Western
Sudán, excited the admiration of all who saw it.
The valley Tíggeda had now a very different aspect from that
which it wore when we were going to Ágades; for while at that time,
beautiful as it was, it was not enlivened by a single human being,
now at its very head we met a considerable caravan of Kél-owí,
laden with salt, and accompanied by a herd of young camels, to be
bartered in the market of Ágades for corn, and further on we found a
herd of from sixty to seventy head of cattle, and numerous flocks of
goats, indulging in the rich herbage which had previously excited my
astonishment. Our minds likewise were excited by the important
news that the old chief of Tin-téllust had started for Sudán, not only
with my fellow-travellers, but with the whole caravan; but while my
fiery and frivolous Mohammed heaped conjecture upon conjecture,
meditating how we should be able to reach them, Hámma, who knew
his father-in-law better, and who was conscious of his own
importance and dignity, remained incredulous. We had some very
pretty mountain views from this side, especially when we
approached Mount Eghellál, behind which the Búnday and other
mountains rose into view.
On the morning of the 5th of November, which was to be the day
of our arrival in Tin-téllust, it was so cold that we started rather late,
Hámma simply declaring that the cold did not allow him to go on
—“Dári yahánna fataúchi.” Having started at length, we made a long
day’s march, and after eleven hours and a half travelling reached the
well-known sand-hill opposite Tin-téllust, where our encampment
had stayed so long, not by the great road along the valley, but by
“the Thief’s Passage,” in order to observe before we were observed.
But the residence of the great chief Ánnur was buried in the deepest
silence; the courtiers, the blacksmiths, all the great men and ladies,
had gone away. Hámma went to see if anybody remained behind,
while we cooked our rice, and prepared to make ourselves
comfortable for the night. That, however, was out of the question, for
when he returned he ordered us to decamp at once; and though
nothing is more dreadful than a night’s march, particularly when it
succeeds to a long day’s journey, yet in the enthusiasm awakened
by the thought of going southwards I with all my heart joined in the
exclamation “Sé fataúchi sé Kanó” (“No rest before Kanó”—properly,
“Nothing but travelling, nothing but Kanó”)!
It was ten o’clock in the evening when we started again along the
broad valley, taking leave for ever of “the English Hill;” but I soon
began to suffer from the consequences of fatigue. In order to avoid
falling from my camel in my drowsy state, I was obliged to drag
myself along, great part of the night, on foot, which was not at all
agreeable, as the ground was at times very rugged, and covered
with long grass. Having crossed a rocky flat, we entered, about four
o’clock in the morning, the wide plain of Tin-téggana, stumbling
along through the thick cover of bú rékkebah and other sorts of
herbage, till dawn, coming on with rather chilly air, revealed to our
benumbed senses the encampment of the caravan. Having therefore
made repeated halts, to give the people time to recognize us, in
order not to occasion any alarm, as our leader Hámma was not with
us, but had lain down at the road-side to get a few hours’ rest, we
made straight for the two European tents which showed us precisely
the residence of my fellow-travellers. The old chief Ánnur was up,
and received me with great kindness—more kindly, I must say, than
my colleagues, who apparently felt some jealousy on account of the
success which had attended my proceedings. Having once more
taken possession of the well-known home of our little tent, I preferred
looking about the encampment to lying down; for sleeping after
sunrise is not agreeable to me.
The valley Tin-téggana, wherein Ánnur, with his people, was
encamped, is in this place about three miles broad, being bordered
towards the east by a low range of hills with the small cone of Ádode
rising to a greater elevation, towards the west by the Búnday and
some smaller mountains; towards the south, where the ground rises,
it is lined by more detached peaks; while on the north side an open
view extends down the valley as far as the large mountain mass
which borders the valley of Tin-téllust on the north. Altogether it was
a fine, open landscape, embracing the country which forms the
nucleus, if I may say so, of the domain of the old chief, whose
camels pasture here the whole year round, while he himself usually
takes up his residence in this place about this season, when nature
is in its prime, and the weather becomes cool, in order to enjoy the
country air.
We ourselves had as yet no idea of making a long stay here, but
indulged in the hope of starting the next day, when all of a sudden
about noon our old friend declared solemnly that he was unable to
go with us at present, that he himself was obliged to wait for the salt
caravan, while his confidential slave Zinghína was now to go
southwards. He said that, if we chose, we might go on with the latter.
He supposed, perhaps, that none of us would dare to do so; but
when I insisted upon it afterwards he as well as Zinghína declared
that the attempt was too dangerous, and it would have been absurd
to insist on accompanying the slave. For the moment such a
disappointment was very trying. However, I afterwards perceived
that, though we had lost more than a month of the finest season for
travelling, we had thereby acquired all possible security for safely
attaining the object of our journey; for now we were obliged to send
off all our luggage with Zinghína in advance, and might fully expect
to travel with infinitely more ease and less trouble, when no longer
encumbered with things which, though of little value, nevertheless
attracted the cupidity of the people. At the time, however, even this
was not at all agreeable, as Overweg and I had to part with almost
all our things, and to send them on to Kanó, to the care of a man of
whose character we knew nothing.
Friday, November 8.—Nearly all the Arabs and many of the Kél-
owí started, and it awakened some feeling of regret to see them go
and to be ourselves obliged to stay behind. Our friend Músa, who
had been the most faithful of our Tinýlkum camel-drivers, who had
visited us almost daily in our tent, and from whom we had obtained
so much valuable information, was the last to take leave of us. But
as soon as the caravan was out of sight I determined to make the
best possible use of this involuntary leisure, by sifting elaborately the
varied information which I had been able to collect in Ágades, and by
sending a full report to Europe, in order to engage the interest of the
scientific public in our expedition, and to justify Her Majesty’s
Government in granting us new supplies, without which, after our
heavy losses, we should be obliged to return directly, leaving the
chief objects of the expedition unattained. Owing to this resolution,
our quiet life in Asben was not, I hope, without its fruits.
Our encampment, too, became more cheerful and agreeable
when, on the following day, we transferred it to the korámma Ofáyet,
a beautiful little branch wady of the spacious valley Tin-téggana,
issuing from a defile (a “kógo-n-dútsi”) formed by the Búnday and a
lower mount to the south, along which led the path to Ásodi. It was
most densely wooded with talha-trees, and overgrown with tall bú
rékkebah and allwot, and was thinned only very gradually, as
immense branches and whole trees were cut down daily to feed the
fires during the night; for it was at times extremely cold, and we felt
most comfortable when in the evening we stretched ourselves in
front of our tents, round an enormous fire. The tall herbage also was
by degrees consumed, not only by the camels, but by the
construction of small conical huts; so that gradually a varied and
pleasant little village sprang up in this wild spot, which is represented
in the accompanying woodcut. The time which we were obliged to
stay here would indeed have passed by most pleasantly but for the
trouble occasioned to Overweg and myself by our impudent and
dissolute Tunisian half-caste servant, who had become quite
insupportable. Unfortunately we did not find an opportunity of
sending him back; and I thought it best to take him with me to Kanó,
where I was sure to get rid of him. Our other servant, Ibrahím, also,
though much more prudent, was not at all trustworthy, which was the
more to be regretted as he had travelled all over Háusa, and even as
far as Gónja, and might have proved of immense service. But
fortunately I had another servant, a thin youth, of most unattractive
appearance, but who nevertheless was the most useful attendant I
ever had; and though young, he had roamed about a great deal over
the whole eastern half of the desert, and shared in many adventures
of the most serious kind. He possessed, too, a strong sense of
honour, and was perfectly to be relied upon. This was Mohammed el
Gatróni, a native of Gatrón, in the southern part of Fezzán, who, with
a short interruption (when I sent him to Múrzuk with the late Mr.
Richardson’s papers and effects), remained in my service till I
returned to Fezzán in 1855.
The zeal with which I had commenced finishing my report was well
rewarded, for on the 14th the Ghadámsi merchant Abu Bakr el
Wákhshi (an old man whom I shall have occasion to mention
repeatedly in the course of my journey) came to Ánnur to complain
of a robbery committed upon part of his merchandise at Tasáwa. But
for this circumstance he would not have touched at this place, and
his people, whom he was sending to Ghadámes, would have
travelled along the great road by Ásodi without our knowing anything
about them. Being assured by the trustworthy old man that the
parcel would reach Ghadámes in two months, I sent off the first part
of my report.
In the course of the 15th, while sitting quietly in my tent, I suddenly
heard my name, “ʿAbd el Kerím,” pronounced by a well-known voice,
and looking out, to my great astonishment saw the little sturdy figure
of my friend Hámma trotting along at a steady pace, his iron spear in
his hand. I thought he was gone to Bilma, as we had been told; but it
appeared that, having come up with the salt caravan at the
commencement of the Hammáda, he only supplied them with more
corn, and having conferred with them, had come back to assist his
old father-in-law in the arduous task of keeping the turbulent tribes in
some state of quiet. The degree of secrecy with which everything is
done in this wild country is indeed remarkable, and no doubt
contributes in a great measure to the influence and power of the
sagacious chief of Tin-téllust.
Four days later came my other friend, the foolish Mohammed, who
had accompanied the expedition of the Sultan of Ágades, and who
was full of interesting details of this little campaign. Neither Astáedfit,
the Prince of the Kél-owí, nor ʿAbd el Káder, the Sultan residing in
Ágades, actually took part in the attack, or “súkkua,” but kept at a
distance. On asking my merry friend what was the result of the
whole, and whether the state of the country to the north was now
settled, and the road secure, he exclaimed, with a significant
grimace, “Bábu dádi” (Not very pleasant); and to what extent
strength was sacrificed to euphony in this expression we were soon
to learn, for the next day the “makéria,” the wife of the “mákeri”
Elíyas, came to tell us that a ghazzia of the Éfadaye had suddenly
fallen upon Tintagh-odé, and had carried off two large droves (gérki)
of camels and all the movable property. Such is the state of this
country, where the chiefs, instead of punishing systematically the
rebels and marauders, regard such instances of crime only as
opportunities for enriching themselves with plunder. The Éfadaye do
not muster more than from two hundred to three hundred spears, but
they are generally assisted by the Ígammén and Édelén, two of the
tribes of the Imghád whom I mentioned above.
The next day the old chief, accompanied by Hámma and seven
other trusty companions, set out for Tintéyyat, in order to consult with
the old mʿallem Azóri, “the wise man of Aír,” about the means of
preventing the bad consequences likely to arise from the turbulent
state into which the country had fallen just when he was about to set
out for Sudán.
The old chief, on his return from his important consultation, gave
us some interesting information about “the Lion of Tintéyyat” (Azóri).
Azóri, he said, had attained the highest degree of wisdom and
learning, comprehending all Divine and human things, without ever
leaving the country of Aír. He was now nearly blind, though younger
in years than himself. His father had likewise been a very wise man.
Formerly, according to our friend, there was another great mʿallem in
the country, named Hámi, a native of Tintagh-odé, and as long as he
lived the Aníslimen, his fellow-citizens, had been good people and
followed the way of justice, while at present their name, “Aníslim,”
was become a mere mockery, for they were the worst of the lawless,
and had lost all fear of God; indeed almost all the troubles into which
the country had been plunged might be ascribed to their agency and
intrigues. Here the old chief had touched on his favourite theme, and
he gave vent to all his anger and wrath against those holy men, who
were evidently opposed to his authority.
The old man was, in fact, on the most friendly terms with us, and
instead of being suspicious of our “writing down his country,” was
anxious to correct any erroneous idea which we might entertain
respecting it. I shall never forget with what pleasure he looked over
my sketch of the route from Tin-téllust to Ágades, while I explained to
him the principal features of it; and he felt a proud satisfaction in
seeing a stranger from a far distant country appreciate the peculiar
charms of the glens and mountains of his own native land. He was,
in short, so pleased with our manners and our whole demeanour that
one day, after he had been reposing in my tent and chatting with me,
he sent for Yusuf, and told him plainly that he apprehended that our
religion was better than theirs; whereupon the Arab explained to him
that our manners indeed were excellent, but that our religious creed
had some great defects, in violating the unity of the Almighty God,
and elevating one of His prophets from his real rank of servant of
God to that of His Son. Ánnur, rising a little from his couch, looked
steadily into Yusuf’s face, and said, “Hákkanánne?” (Is it so?) As for
me, in order not to provoke a disputation with Yusuf, who united in
himself some of the most amiable with some of the most hateful
qualities, I kept silence as long as he was present; but when he
retired I explained to the chief that, as there was a great variety of
sects among the Mohammedans, so there was also among the
Christians, many of whom laid greater stress upon the unimpaired
unity of the Creator than even the Mohammedans. So much sufficed
for the justification of our religion; for the old man did not like to talk
much upon the subject, though he was strict in his prayers, as far as
we were able to observe. He was a man of business, who desired to
maintain some sort of order in a country where everything naturally
inclines to turbulence and disorder. In other respects he allowed
every man to do as he liked; and notwithstanding his practical
severity, he was rather of a mild disposition, for he thought
Europeans dreadful barbarians for slaughtering without pity such
numbers of people in their battles, using big guns instead of spears
and swords, which were, as he thought, the only manly and
becoming weapons.
The 25th of November was a great market-day for our little
settlement, for on the preceding day the long-expected caravan with
provisions arrived from Damerghú, and all the people were buying
their necessary supply; but we had much difficulty in obtaining what
we wanted, as all our things, even the few dollars we had still left,
were depreciated, and estimated at more than 30 per cent. less than
their real value. After having recovered in Ágades a little from the
weakness of my stomach, by the aid of the princely dishes sent me
by ʿAbd el Káder, I had, notwithstanding the fine cool weather, once
more to suffer from the effects of our almost raw and bitter dishes of
Guinea-corn, and the more so as I had no tea left to wash down this
unpalatable and indigestible paste; and I felt more than common
delight when we were regaled on the 27th by a fine strong soup
made from the meat of the bullock which we had bought from Ánnur
for twelve thousand kurdí. It was a day of great rejoicing, and a new
epoch in our peaceful and dull existence, in consequence of which I
found my health greatly restored.
Our patience, indeed, was tried to the utmost, and I looked for
some moments with a sort of despair into Hámma’s face, when, on
his return from a mission to the Éfadaye, which seemed not to have
been quite successful, he told me on the 28th of November that we
should still make a stay here of twenty-five days. Fortunately he
always chose to view things on the worst side, and I was happy to be
assured by the old chief himself that our stay here would certainly
not exceed fifteen days. Nevertheless, as the first short days of our
sham travelling afterwards convinced me, the veracious Hámma,
who had never deceived me, was in reality quite right in his
statement. My friend came to take leave of me, as he was to absent
himself for a few days, in order to visit an elder sister of his, who
lived in Telíshiet, further up the valley of Tin-téggana; and of course I
had to supply him with some handsome little production of European
manufacture.
We had full reason to admire the energy of the old chief, who on
the 30th of November went to a “privy council” with Mʿallem Azóri
and Sultan Astáfidet, which was appointed to be held in some
solitary glen, half-way between Tin-téggana and Asodi, and, after he
had returned late in the evening of the 1st of December, was
galloping along our encampment in the morning of the 2nd, in order
to visit the new watering-place lower down in the principal valley, the
former well beginning to dry up, or rather requiring to be dug to a
greater depth, as the moisture collected during the rainy season was
gradually receding. This was the first time we saw our friend on
horseback; and though he was seventy-six years of age, he sat very
well and upright in his saddle. Overweg went on one of the following
days to see the well (which was about four miles distant from our
encampment, in a west-north-west direction, beyond a little village of
the name of Óbrasen), but found it rather a basin formed between
the rocky cliffs, and fed, according to report, by a spring.
Meanwhile I was surprised to learn from Mohammed Byrji, Ánnur’s
grandson, and next claimant to the succession after Háj ʿAbdúwa,
that the last-named, together with el Usu or Lúsu, the influential chief
of Azanéres, and el Hossén, had started for the south six days
previously, in order to purchase provisions for the salt caravan. In
this little country something is always going on, and the people all
appear to lead a very restless life; what wonder, then, if most of them
are the progeny of wayfarers, begotten from fortuitous and short-
lived matches? Perhaps in no country is domestic life wanting to
such a degree as among the Kél-owí properly so called, but it would
be wrong to include in this category the tribes of purer blood living at
some distance from this centre of the salt trade.
At length, on the 5th of December, the first body of the salt
caravan arrived from Bilma, opening the prospect of a speedy
departure from this our African home; but although we were very
eager to obtain a glance at them, they did not become visible, but
kept further to the west. The following evening, however, several
friends and partisans of the old chief arrived, mounted on mehára,
and were received by the women with loud, shrill cries of welcome
(“tirlelák” in Temáshight), very similar to the “tehlíl” of the Arabs.
Saturday, December 7.—Preparations were now gradually made
for our setting out; but previously it was necessary to provide a
supply of water, not only for the immediate use of the numerous salt
caravan, but for the constant one of those people who were to
remain behind during the absence of their chief and master.
Accordingly, on the 7th of December the old chief left our
encampment, with all his people, in solemn procession, in order to
dig a new well; and after having long searched with a spear for the
most favourable spot, they set to work close to the entrance of a
small branch wady, joining the main valley from the east side, not far
from Ádode; and having obtained a sufficient supply of water, they
walled the well in with branches and stones, so that it was capable of
retaining water at least till the beginning of the next rainy season,
when, most probably, the floods would destroy it. There are, indeed,
in these countries very few undertakings of this kind the existence of
which is calculated upon for more than a year.
Meanwhile, during our long, lazy stay in this tranquil alpine retreat
of the wilderness, after I had finished my report on Ágades, I began
to study in a more comprehensive way the interesting language of
that place, and in order to effect that purpose had been obliged to
make a sort of treaty with that shameless profligate Zúmmuzuk, who
for his exploits in Ágades had received severe punishment from his
master. The chief conditions of our covenant were, that he was to
receive every day a certain allowance, but that during his presence
in my tent he was not to move from the place assigned him, the
limits of which were very accurately defined—of course at a
respectful distance from my luggage; and if he touched anything I
was officially permitted by Ánnur to shoot him on the spot.
Notwithstanding the coolness and reserve which I was obliged to
adopt in my intercourse with this man, I was fully capable of
estimating his veracity, and in the course of my journey and my
researches I convinced myself that in no one instance did he deviate
from the truth.
Going on in this way, I had completed, by the 8th of the month, an
exact and full vocabulary of the Emgédesi language, and could with
more leisure indulge in a conversation with my friend Ámagay, the
chief eunuch and confidential servant of the Sultan of Ágades, who
paid me a visit, and brought me the most recent news from the
capital. Affairs were all in the best state, his business now being
merely to arrange a few matters with Ánnur before the latter set out
for Sudán. He informed me that the salt caravan of the Kél-gerés
and Itísan had long ago returned from Bilma, taking with them our
letter to the Sultan of Sókoto, and accompanied by Mohammed
Bóro, who had taken all his children with him except those who were
still attending school. Ámagay had also brought with him the curious
letter from Mustapha, the Governor of Fezzán, which is spoken of by
Mr. Richardson. I treated him with some coffee (which was now with
me a very precious article, as I had but little left), and made him a
small present.
CHAPTER XX.
FINAL DEPARTURE FOR SUDÁN.
Thursday, December 12.—At length the day broke when we were

to move on and get nearer the longed-for object of our journey,
though we were aware that our first progress would be slow. But
before we departed from this region, which had become so familiar
to us, I wished to take a last glimpse down the valley towards Tin-
téllust, and wandered towards the offshoots of Mount Búnday, which
afforded me a fine prospect over the whole valley up to that beautiful
mountain mass which forms so characteristic a feature in the
configuration of the whole country. The hills which I ascended
consisted of basalt, and formed a low ridge, which was separated
from the principal mountain mass by a hollow of sandstone
formation. Having bade farewell to the blue mountains of Tin-téllust, I
took leave of the charming little valley Ofáyet, which, having been a
few moments previously a busy scene of life, was now left to silence
and solitude.
Late in the morning we began to move, but very slowly, halting
every now and then. At length the old chief himself came up, walking
like a young man before his méheri, which he led by the nose-cord,
and the varied groups composing the caravan began to march more
steadily. It was a whole nation in motion, the men on camels or on
foot, the women on bullocks or on asses, with all the necessaries of
the little household, as well as the houses themselves, a herd of
cattle, another of milk-goats, and numbers of young camels running
playfully alongside, and sometimes getting between the regular lines
of the laden animals. The ground was very rocky and rugged, and
looked bare and desolate in the extreme, the plain being strewn for a
while with loose basaltic stones, like the Plain of Tághist.
Several high peaks characterize this volcanic region, and after
having left to our right the peak called Ebárrasa, we encamped, a

ebook download Financial Analysis with Microsoft Excel 8th Edition Timothy R. Mayes - eBook PDF all chapter

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

ebook download Financial Analysis with Microsoft Excel 8th Edition Timothy R. Mayes - eBook PDF all chapter

Uploaded by

Copyright:

Available Formats

Financial Analysis with Microsoft Excel

8th Edition Timothy R. Mayes - eBook

(eBook PDF) Financial Analysis with Microsoft Excel

(eBook PDF) Financial Analysis with Microsoft Excel 9th

Essentials of Modern Business Statistics with Microsoft

Bayesian Analysis with Excel and R 1st Edition Conrad

(eBook PDF) Modern Business Statistics with Microsoft

(eBook PDF) Modern Business Statistics, with Microsoft

(eBook PDF) GO! with Microsoft Excel 2013 Comprehensive

(eBook PDF) Statistics for Managers Using Microsoft

Australia • Brazil • Mexico • Singapore • United Kingdom • United States

Content Developer: Tara Slagle,

Sr. Marketing Manager: Nate Anderson

Art and Cover Direction, Production Management, USA

Microsoft Excel® is a registered trademark www.cengage.com/global

To learn more about Cengage Learning Solutions, visit

Purchase any of our products at your local college store or at our

Printed in the United States of America

CHAPTER 1 Introduction to Excel 2016 1

Using Excel’s Built-In Functions 20

CHAPTER 2 The Basic Financial Statements 41

CHAPTER 3 Financial Statement Analysis Tools 69

CHAPTER 4 The Cash Budget 103

Calculating Text Strings 106

CHAPTER 5 Financial Statement Forecasting 139

CHAPTER 6 Forecasting Sales with Time Series Methods 167

Simple Exponential Smoothing 175

CHAPTER 7 Break-Even and Leverage Analysis 195

CHAPTER 8 The Time Value of Money 215

Graduated Annuities 230

CHAPTER 9 Common Stock Valuation 247

CHAPTER 10 Bond Valuation 283

Yield to Call 294

CHAPTER 11 The Cost of Capital 321

CHAPTER 12 Capital Budgeting 347

CHAPTER 13 Risk and Capital Budgeting 389

CHAPTER 14 Portfolio Statistics and Diversification 425

CHAPTER 15 Writing User-Defined Functions with VBA 463

Using ParamArray for Unlimited Arguments 483

CHAPTER 16 Analyzing Datasets with Tables and Pivot Tables 493

APPENDIX Directory of User-Defined Functions in

Purpose of the Book

Organization of the Book

• Chapter 3: Financial Statement Analysis Tools

example, scenario analysis is an often recommended technique, but it is rarely demonstrated

PV(RATE, NPER, PMT, FV, TYPE)

Changes from the 7th Edition

A Note on the Internet

After studying this chapter, you should be able to:

Starting Microsoft Excel

Parts of the Excel Screen

The File Tab and Quick Access Toolbar

The Home Tab

The Formula Bar

The Worksheet Area

Navigating the Worksheet

Selecting a Range of Cells

Using Defined Names

Wednesday, October 30.—We at length left Ágades. I felt as if I

Thursday, December 12.—At length the day broke when we were

You might also like