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 Chapter 1
An Overview of Corporate Finance and
The Financial Environment

ANSWERS TO END-OF-CHAPTER QUESTIONS

1-1 a. A proprietorship, or sole proprietorship, is a business owned by one individual. A

partnership exists when two or more persons associate to conduct a business. In
contrast, a corporation is a legal entity created by a state. The corporation is separate
and distinct from its owners and managers.

b. In a limited partnership, limited partners’ liabilities, investment returns and control

are limited, while general partners have unlimited liability and control. A limited
liability partnership (LLP), sometimes called a limited liability company (LLC),
combines the limited liability advantage of a corporation with the tax advantages of a
partnership. A professional corporation (PC), known in some states as a professional
association (PA), has most of the benefits of incorporation but the participants are not
relieved of professional (malpractice) liability.

c. Stockholder wealth maximization is the appropriate goal for management decisions.

The risk and timing associated with expected earnings per share and cash flows are
considered in order to maximize the price of the firm’s common stock.

d. A money market is a financial market for debt securities with maturities of less than
one year (short-term). The New York money market is the world’s largest. Capital
markets are the financial markets for long-term debt and corporate stocks. The New
York Stock Exchange is an example of a capital market. Primary markets are the
markets in which newly issued securities are sold for the first time. Secondary
markets are where securities are resold after initial issue in the primary market. The
New York Stock Exchange is a secondary market.

Answers and Solutions: 1- 1

 e. In private markets, transactions are worked out directly between two parties and
structured in any manner that appeals to them. Bank loans and private placements of
debt with insurance companies are examples of private market transactions. In public
markets, standardized contracts are traded on organized exchanges. Securities that
are issued in public markets, such as common stock and corporate bonds, are
ultimately held by a large number of individuals. Private market securities are more
tailor-made but less liquid, whereas public market securities are more liquid but
subject to greater standardization. Derivatives are claims whose value depends on
what happens to the value of some other asset. Futures and options are two important
types of derivatives, and their values depend on what happens to the prices of other
assets, say IBM stock, Japanese yen, or pork bellies. Therefore, the value of a
derivative security is derived from the value of an underlying real asset.

f. An investment banker is a middleman between businesses and savers. Investment

banking houses assist in the design of corporate securities and then sell them to savers
(investors) in the primary markets. Financial service corporations offer a wide range
of financial services such as brokerage operations, insurance, and commercial
banking. A financial intermediary buys securities with funds that it obtains by issuing
its own securities. An example is a common stock mutual fund that buys common
stocks with funds obtained by issuing shares in the mutual fund.

g. A mutual fund is a corporation that sells shares in the fund and uses the proceeds to
buy stocks, long-term bonds, or short-term debt instruments. The resulting dividends,
interest, and capital gains are distributed to the fund’s shareholders after the
deduction of operating expenses. Different funds are designed to meet different
objectives. Money market funds are mutual funds which invest in short-term debt
instruments and offer their shareholders check writing privileges; thus, they are
essentially interest-bearing checking accounts.

h. Physical location exchanges, such as the New York Stock Exchange, facilitate
communication between buyers and sellers of securities. Each physical location
exchange is a physical entity at a particular location and is governed by an elected
board of governors. A computer/telephone network, such as Nasdaq, consists of all
the facilities that provide for security transactions not conducted at a physical location
exchange. These facilities are, basically, the communications network that links the
buyers and sellers.

i. An open outcry auction is a method of matching buyers and sellers. In an auction, the
buyers and sellers are face-to-face, with each stating the prices and which they will
buy or sell. In a dealer market, a dealer holds an inventory of the security and makes
a market by offering to buy or sell. Others who wish to buy or sell can see the offers
made by the dealers, and can contact the dealer of their choice to arrange a
transaction. In an ECN, orders from potential buyers and sellers are automatically
matched, and the transaction is automatically completed.

Answers and Solutions: 1- 2

j. Production opportunities are the returns available within an economy from investment
in productive assets. The higher the production opportunities, the more producers
would be willing to pay for required capital. Consumption time preferences refer to
the preferred pattern of consumption. Consumer’s time preferences for consumption
establish how much consumption they are willing to defer, and hence save, at
different levels of interest.

k. The real risk-free rate is that interest rate which equalizes the aggregate supply of,
and demand for, riskless securities in an economy with zero inflation. The real risk-
free rate could also be called the pure rate of interest since it is the rate of interest that
would exist on very short-term, default-free U.S. Treasury securities if the expected
rate of inflation were zero. It has been estimated that this rate of interest, denoted by
r*, has fluctuated in recent years in the United States in the range of 2 to 4 percent.
The nominal risk-free rate of interest, denoted by rRF, is the real risk-free rate plus a
premium for expected inflation. The short-term nominal risk-free rate is usually
approximated by the U.S. Treasury bill rate, while the long-term nominal risk-free
rate is approximated by the rate on U.S. Treasury bonds. Note that while T-bonds are
free of default and liquidity risks, they are subject to risks due to changes in the
general level of interest rates.

l. The inflation premium is the premium added to the real risk-free rate of interest to
compensate for the expected loss of purchasing power. The inflation premium is the
average rate of inflation expected over the life of the security. Default risk is the risk
that a borrower will not pay the interest and/or principal on a loan as they become
due. Thus, a default risk premium (DRP) is added to the real risk-free rate to
compensate investors for bearing default risk. Liquidity refers to a firm’s cash and
marketable securities position, and to its ability to meet maturing obligations. A
liquid asset is any asset that can be quickly sold and converted to cash at its “fair”
value. Active markets provide liquidity. A liquidity premium is added to the real
risk-free rate of interest, in addition to other premiums, if a security is not liquid.

m. Interest rate risk arises from the fact that bond prices decline when interest rates rise.
Under these circumstances, selling a bond prior to maturity will result in a capital
loss, and the longer the term to maturity, the larger the loss. Thus, a maturity risk
premium must be added to the real risk-free rate of interest to compensate for interest
rate risk. Reinvestment rate risk occurs when a short-term debt security must be
“rolled over.” If interest rates have fallen, the reinvestment of principal will be at a
lower rate, with correspondingly lower interest payments and ending value. Note that
long-term debt securities also have some reinvestment rate risk because their interest
payments have to be reinvested at prevailing rates.

Answers and Solutions: 1- 3

 n. The term structure of interest rates is the relationship between yield to maturity and
term to maturity for bonds of a single risk class. The yield curve is the curve that
results when yield to maturity is plotted on the Y-axis with term to maturity on the X-
axis.

o. When the yield curve slopes upward, it is said to be “normal,” because it is like this
most of the time. Conversely, a downward-sloping yield curve is termed “abnormal”
or “inverted.”

p. The expectations theory states that the slope of the yield curve depends on
expectations about future inflation rates and interest rates. Thus, if the annual rate of
inflation and future interest rates are expected to increase, the yield curve will be
upward sloping, whereas the curve will be downward sloping if the annual rates are
expected to decrease.

r. A foreign trade deficit occurs when businesses and individuals in the U. S. import
more goods from foreign countries than are exported. Trade deficits must be
financed, and the main source of financing is debt. Therefore, as the trade deficit
increases, the debt financing increases, driving up interest rates. U. S. interest rates
must be competitive with foreign interest rates; if the Federal Reserve attempts to set
interest rates lower than foreign rates, foreigners will sell U.S. bonds, decreasing
bond prices, resulting in higher U. S. rates. Thus, if the trade deficit is large relative
to the size of the overall economy, it may hinder the Fed’s ability to combat a
recession by lowering interest rates.

1-2 Sole proprietorship, partnership, and corporation are the three principal forms of business
organization. The advantages of the first two include the ease and low cost of formation.
The advantages of the corporation include limited liability, indefinite life, ease of
ownership transfer, and access to capital markets.
The disadvantages of a sole proprietorship are (1) difficulty in obtaining large sums
of capital; (2) unlimited personal liability for business debts; and (3) limited life. The
disadvantages of a partnership are (1) unlimited liability, (2) limited life, (3) difficulty of
transferring ownership, and (4) difficulty of raising large amounts of capital. The
disadvantages of a corporation are (1) double taxation of earnings and (2) requirements to
file state and federal reports for registration, which are expensive, complex and time-
consuming.

1-3 The three primary determinants of a firm’s cash flows are: (1) sales revenues; (2)
operating expenses, such as raw materials costs and labor costs; and (3) the necessary
investments in operating capital, such as buildings, equipment, and inventory.

1-4 Financial intermediaries are business organizations that receive funds in one form and
repackage them for the use of those who need funds. Through financial intermediation,
resources are allocated more effectively, and the real output of the economy is thereby
increased.

Answers and Solutions: 1- 4

1-5 Short-term rates are more volatile because (1) the Fed operates mainly in the short-term
sector, hence Federal Reserve intervention has its major effect here, and (2) long-term
rates reflect the average expected inflation rate over the next 20 to 30 years, and this
average does not change as radically as year-to-year expectations.

1-6 a. If transfers between the two markets were costly, interest rates would be different in
the two areas. Area Y, with the relatively young population, would have less in
savings accumulation and stronger loan demand. Area O, with the relatively old
population, would have more savings accumulation and weaker loan demand as the
members of the older population have already purchased their houses, and are less
consumption oriented. Thus, supply/demand equilibrium would be at a higher rate of
interest in Area Y.

b. Yes. Nationwide branching, and so forth, would reduce the cost of financial transfers
between the areas. Thus, funds would flow from Area O with excess relative supply
to Area Y with excess relative demand. This flow would increase the interest rate in
Area O and decrease the interest rate in Y until the rates were roughly equal, the
difference being the transfer cost.

1-7 a. The immediate effect on the yield curve would be to lower interest rates in the short-
term end of the market, since the Fed deals primarily in that market segment.
However, people would expect higher future inflation, which would raise long-term
rates. The result would be a much steeper yield curve.

b. If the policy is maintained, the expanded money supply will result in increased rates
of inflation and increased inflationary expectations. This will cause investors to
increase the inflation premium on all debt securities, and the entire yield curve would
rise; that is, all rates would be higher.

Answers and Solutions: 1- 5

 SOLUTIONS TO END-OF-CHAPTER PROBLEMS

1-1 r* = 3%; I1 = 2%; I2 = 4%; I3 = 4%; MRP = 0; rT-2 = ?; rT-3 = ?

r = r* + IP + DRP + LP + MRP.

Since these are Treasury securities, DRP = LP = 0.

rT-2 = r* + IP2
IP2 = (2% + 4%)/2 = 3%
rT-2 = 3% + 3% = 6%.

rT-3 = r* + IP3
IP3 = (2% + 4% + 4%)/3 = 3.33%
rT-3 = 3% + 3.33% = 6.33%.

1-2 rT-10 = 6%; rC-10 = 8%; LP = 0.5%; DRP = ?

r = r* + IP + DRP + LP + MRP.

rT-10 = 6% = r* + IP + MRP; DRP = LP = 0.

rC-10 = 8% = r* + IP + DRP + 0.5% + MRP.

Because both bonds are 10-year bonds the inflation premium and maturity risk premium
on both bonds are equal. The only difference between them is the liquidity and default
risk premiums.

rC-10 = 8% = r* + IP + MRP + 0.5% + DRP. But we know from above that r* + IP +

MRP = 6%; therefore,

rC-10 = 8% = 6% + 0.5% + DRP

1.5% = DRP.

1-3 r* = 3%; IP = 3%; rT-2 = 6.2%; MRP2 = ?

rT-2 = k* + IP + MRP = 6.2%

rT-2 = 3% + 3% + MRP = 6.2%
MRP = 0.2%.

Answers and Solutions: 1- 6

1-4 r = r* + IP + MRP + DRP + LP.
r* = 0.03.
IP = [0.03 + 0.04 + (5)(0.035)]/7 = 0.035.
MRP = 0.0005(6) = 0.003.
DRP = 0.
LP = 0.

r = 0.03 + 0.035 + 0.003 = 0.068 = 6.8%.

1-5 First, note that we will use the equation rt = 3% + IPt + MRPt. We have the data needed
to find the IPs:

8% + 5% + 4% + 4% + 4% 25%
IP5 = = = 5%.
5 5

8% + 5%
IP2 = = 6.5%.
2

Now we can substitute into the equation:

r2 = 3% + 6.5% + MRP2 = 10%. r5 = 3% + 5% + MRP5 = 10%.

Now we can solve for the MRPs, and find the difference:

MRP5 = 10% - 8% = 2%. MRP2 = 10% - 9.5% = 0.5%.

Difference = (2% - 0.5%) = 1.5%.

Answers and Solutions: 1- 7

1-6 Basic relevant equations:

rt = r* + IPt + DRPt + MRPt + LPt.

But here IP is the only premium, so rt = r* + IPt.

IPt = Avg. inflation = (I1 + I2 + ...)/N.

We know that I1 = IP1 = 3% and r* = 2%. Therefore,

r1 = 2% + 3% = 5%. r3 = r1 + 2% = 5% + 2% = 7%. But,

r3 = r* + IP3 = 2% + IP3 = 7%, so

IP3 = 7% - 2% = 5%.

We also know that It = Constant after t = 1.

We can set up this table:

r* I Avg. I = IPt r = r* + IPt

1 2 3 3%/1 = 3% 5%
2 2 I (3% + I)/2 = IP2
3 2 I (3% + I + I)/3 = IP3 r3 = 7%, so IP3 = 7% - 2% = 5%.

Avg. I = IP3 = (3% + 2I)/3 = 5%

2I = 12%
I = 6%.

Answers and Solutions: 1- 8

1-7 a. Real
Years to Risk-Free
Maturity Rate (r*) IP** MRP rT = r* + IP + MRP
1 2% 7.00% 0.2% 9.20%
2 2 6.00 0.4 8.40
3 2 5.00 0.6 7.60
4 2 4.50 0.8 7.30
5 2 4.20 1.0 7.20
10 2 3.60 1.0 6.60
20 2 3.30 1.0 6.30

**The computation of the inflation premium is as follows:

Expected Average
Year Inflation Expected Inflation
1 7% 7.00%
2 5 6.00
3 3 5.00
4 3 4.50
5 3 4.20
10 3 3.60
20 3 3.30

For example, the calculation for 3 years is as follows:

7% + 5% + 3%
= 5.00%.
3
Thus, the yield curve would be as follows:

Answers and Solutions: 1- 9

 Interest Rate
(%)
11.0

10.5

10.0

9.5

9.0

8.5
LILCO
8.0

7.5
Exxon
7.0

6.5
T-bonds

0 2 4 6 8 10 12 14 16 18 20
Years to Maturity

b. The interest rate on the Exxon bonds has the same components as the Treasury
securities, except that the Exxon bonds have default risk, so a default risk premium
must be included. Therefore,

rExxon = r* + IP + MRP + DRP.

For a strong company such as Exxon, the default risk premium is virtually zero for
short-term bonds. However, as time to maturity increases, the probability of default,
although still small, is sufficient to warrant a default premium. Thus, the yield risk
curve for the Exxon bonds will rise above the yield curve for the Treasury securities.
In the graph, the default risk premium was assumed to be 1.0 percentage point on the
20-year Exxon bonds. The return should equal 6.3% + 1% = 7.3%.

c. LILCO bonds would have significantly more default risk than either Treasury
securities or Exxon bonds, and the risk of default would increase over time due to
possible financial deterioration. In this example, the default risk premium was
assumed to be 1.0 percentage point on the 1-year LILCO bonds and 2.0 percentage
points on the 20-year bonds. The 20-year return should equal 6.3% + 2% = 8.3%.

Answers and Solutions: 1- 10

 SOLUTION TO SPREADSHEET PROBLEM

1-8 The detailed solution for the spreadsheet problem is available both on the instructor’s
resource CD-ROM (in the file Solution for FM11 Ch 01 P08 Build a Model.xls) and on
the instructor’s side of the textbook’s web site, http://brigham.swcollege.com.

Answers and Solutions: 1- 11

 MINI CASE

Assume that you recently graduated with a degree in finance and have just reported to
work as an investment advisor at the brokerage firm of Balik and Kiefer Inc. One of the
firm’s clients is Michelle Dellatorre, a professional tennis player who has just come to the
United States from Chile. Dellatorre is a highly ranked tennis player who would like to
start a company to produce and market apparel that she designs. She also expects to invest
substantial amounts of money through Balik and Kiefer. Dellatorre is also very bright,
and, therefore, she would like to understand, in general terms, what will happen to her
money. Your boss has developed the following set of questions which you must ask and
answer to explain the U.S. financial system to Dellatorre.

a. Why is corporate finance important to all managers?

Answer: Corporate finance provides the skills managers need to: (1) identify and select the
corporate strategies and individual projects that add value to their firm; and (2)
forecast the funding requirements of their company, and devise strategies for
acquiring those funds.

b. Describe the organizational forms a company might have as it evolves from a start-up
to a major corporation. List the advantages and disadvantages of each form.

Answer: The three main forms of business organization are (1) sole proprietorships, (2)
partnerships, and (3) corporations. In addition, several hybrid forms are gaining
popularity. These hybrid forms are the limited partnership, the limited liability
partnership, the professional corporation, and the s corporation.
The proprietorship has three important advantages: (1) it is easily and
inexpensively formed, (2) it is subject to few government regulations, and (3) the
business pays no corporate income taxes. The proprietorship also has three important
limitations: (1) it is difficult for a proprietorship to obtain large sums of capital; (2)
the proprietor has unlimited personal liability for the business’s debts, and (3) the life
of a business organized as a proprietorship is limited to the life of the individual who
created it.
The major advantage of a partnership is its low cost and ease of formation. The
disadvantages are similar to those associated with proprietorships: (1) unlimited
liability, (2) limited life of the organization, (3) difficulty of transferring ownership,
and (4) difficulty of raising large amounts of capital. The tax treatment of a
partnership is similar to that for proprietorships, which is often an advantage.

Mini Case: 1 - 12
 The corporate form of business has three major advantages: (1) unlimited life, (2)
easy transferability of ownership interest, and (3) limited liability. While the
corporate form offers significant advantages over proprietorships and partnerships, it
does have two primary disadvantages: (1) corporate earnings may be subject to
double taxation and (2) setting up a corporation and filing the many required state and
federal reports is more complex and time-consuming than for a proprietorship or a
partnership.
In a limited partnership, the limited partners are liable only for the amount of their
investment in the partnership; however, the limited partners typically have no control.
The limited liability partnership form of organization combines the limited liability
advantage of a corporation with the tax advantages of a partnership. Professional
corporations provide most of the benefits of incorporation but do not relieve the
participants of professional liability. S corporations are similar in many ways to
limited liability partnerships, but LLPS frequently offer more flexibility and benefits
to their owners.

c. How do corporations “go public” and continue to grow? What are agency
problems?

Answer: A company goes public when it sells stock to the public in an initial public as the firm
grows, it might issue additional stock or debt. An agency problem occurs when the
managers of the firm act in their own self interests and not in the interests of the
shareholders.

d. What should be the primary objective of managers?

Answer: The corporation’s primary goal is stockholder wealth maximization, which translates
to maximizing the price of the firm’s common stock.

d. 1. Do firms have any responsibilities to society at large?

Answer: Firms have an ethical responsibility to provide a safe working environment, to avoid
polluting the air or water, and to produce safe products. However, the most
significant cost-increasing actions will have to be put on a mandatory rather than a
voluntary basis to ensure that the burden falls uniformly on all businesses.

Mini Case: 1- 13
d. 2. Is stock price maximization good or bad for society?

Answer: The same actions that maximize stock prices also benefit society. Stock price
maximization requires efficient, low-cost operations that produce high-quality goods
and services at the lowest possible cost. Stock price maximization requires the
development of products and services that consumers want and need, so the profit
motive leads to new technology, to new products, and to new jobs. Also, stock price
maximization necessitates efficient and courteous service, adequate stocks of
merchandise, and well-located business establishments--factors that are all necessary
to make sales, which are necessary for profits.

d. 3. Should firms behave ethically?

Answer: Yes. Results of a recent study indicate that the executives of most major firms in the
United States believe that firms do try to maintain high ethical standards in all of their
business dealings. Furthermore, most executives believe that there is a positive
correlation between ethics and long-run profitability. Conflicts often arise between
profits and ethics. Companies must deal with these conflicts on a regular basis, and a
failure to handle the situation properly can lead to huge product liability suits and
even to bankruptcy. There is no room for unethical behavior in the business world.

e. What three aspects of cash flows affect the value of any investment?

Answer: (1) amount of expected cash flows; (2) timing of the cash flow stream; and (3)
riskiness of the cash flows.

f. What are free cash flows? What are the three determinants of free cash flows?

Answer: free cash flows are the cash flows available for distribution to all investors
(stockholders and creditors) after paying expenses (including taxes) and making the
necessary investments to support growth. Three factors determine cash flows: (1)
current level and growth rates of sales; (2) operating expenses; and (3) capital
expenses.

g. What is the weighted average cost of capital? What affects it?

Answer: The weighted average cost of capital (WACC) is the average rate of return required
by all of the company’s investors (stockholders and creditors). It is affected by the
firm’s capital structure, interest rates, the firm’s risk, and the market’s overall attitude
toward risk.

Mini Case: 1 - 14
h. How do free cash flows and the weighted average cost of capital interact to
determine a firm’s value?

Answer: A firm’s value is the sum of all future expected free cash flows, converted into
today’s dollars.

FCF1 FCF2 FCF∞

Value = + + ....
(1 + WACC)1 (1 + WACC) 2 (1 + WACC) ∞

i. What are financial assets? Describe some financial instruments.

Answer: Financial assets are pieces of paper with contractual obligations. Some short-term
(i.e., they mature in less than a year) are instruments with low default risk are u.s.
treasury bills, banker’s acceptances, commercial paper, negotiable CDs, and
eurodollar deposits. Commercial loans (which have maturities up to seven years)
have rates that are usually tied to the prime rate (i.e., the rate that U.S. banks charge
to their best customers) or LIBOR (the London Interbank Offered Rate, which is the
rate that banks in the U.K. charge one another. U.S. treasury notes and bonds have
maturities from two to thirty years; they are free of default risk. Mortgages have
maturities up to thirty years. Municipal bonds have maturities of up to thirty years;
their interest is exempt from most taxes. Corporate bonds have maturities up to forty
years. Municipal and corporate bonds are subject to default risk. Some preferred
stocks have no maturity date, some do have a specific maturity date. Common stock
has no maturity date, and is riskier than preferred stock.

j. Who are the providers (savers) and users (borrowers) of capital? How is capital
transferred between savers and borrowers?

Answer: Households are net savers. Non-financial corporations are net borrowers.
Governments are net borrowers, although the U.S. government is a net saver when it
runs a surplus. Non-financial corporations (i.e., financial intermediaries) are slightly
net borrowers, but they are almost breakeven. Capital is transferred through: (1)
direct transfer (e.g., corporation issues commercial paper to insurance company); (2)
an investment banking house (e.g., IPO, seasoned equity offering, or debt placement);
(3) a financial intermediary (e.g., individual deposits money in bank, bank makes
commercial loan to a company).

Mini Case: 1- 15
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at call of Kaulu, comes out of the shark bald-headed, 528.
directed by Kaulu in awa drinking, 524.
enticed by spirits to go rod-fishing, 530.
first-born of Kukaohialaka and Hinauluohia, 522.
is carried off by the spirits to Kane and Kanaloa, 522.
Kaulu missing, starts off in search, 522;
Makalii, inquired of, said, “Your brother is in the shark”, 528.
killed and put into an opihi shell, 530.
left at Papakolea, Moanalua, 530.
looking for food, is taken by Kaulu to Manowaikeoo, 526.
loved and esteemed Kaulu, 522.
Makalii locates the shark which swallowed, 528.
 missed, is searched for by Kaulu, 530.
not dead, is again tempted by the spirits, 528.
observes Kaulu’s directions in awa drinking, 524.
questions Kamano why kill the next child, 522.
released and brought to life again by Kaulu, 530.
returns to the house to join the spirits, 524.
seen and recognized by Kaulu, 524.
sharks called together to take, to their king and is swallowed whole, 526.
tempted by the spirits to go surf-riding, 526.
whereabouts of, searched for in vain, 528.

Kaeho Kumanawa, 14, 406.

Kaelehuluhulu, Aku and Opakapaka remained at, 570.

Kaelo, month of; sea of, 372.

Kaena, Cape (north point of Oahu), 28.

Lanai, 24.
of the wide sea, 398.
Point, 280, 298, 374;
Wahanui encounters storm off, 516.
tail of white shark, 28;
of hammer-headed shark is, 374.

Kaenakulani, 24.

Kaha, 378.

Kahai and Malanaihaehae, chief warriors of Kualii, 412.

breadfruit planted by, 392.
fish-line of, broken, 20, 25, 404, 405.

Kahaiaonui-a-Piikea, or -a-Umi, 230.

Kahaimakana, rain-dispelling conch of, 14.

Kahakapolani, 384, 406;

name with double meaning, 384.

Kahakuakea, 406.
Kahakuikamoana, historian, 2, 4, 6, 10.

Kahakuloa, 284, 302.

Kahala, amber-fish, 570;

famed beauty of Puna, 500.
Mokuleia with its dish of, 374.
threatening, 386.

Kahalakala, 376.

Kahalaokolepuupuu and Lipewale set out to gather kukui nuts, 606.

[xii]assigns to Lipewale the nuts to carry, 606.
bids Lipewale stay home to print her pa-u, while the rest went sea-bathing, 606.
calls out “What is it, Lipewale?” 604.
calls the old woman Lipewale, 604.
fish-pond owned by, held various species, 604.
Kahikiula departs for Kahikiku to live with, 602.
Laukia threatens to kill, 602.
of Kahikiku, married to Kahikiula, 602;
did not accompany him to Kuaihelani, 602.
two messengers from, arrive, 604.

Kahalemilo, son of Imaikalani, chief of Kau; bones of, 318.

Kahaloa, surf-riding sea at, 378;

cold wind of, 392.
kou trees at, 400.

Kahaloalena, 14, 24.

Kahaloalenaula, 24.

Kahaluu, Kona, heiau of Makolea in, 324.

Kapaihiahilina outside of, 356.
Kualii arrived at, 428.
Lono in dedication service of, at, 330.
Lono living at, 356.

Kahana, 284, 302, 414, 428.

sands of, 428.
 wild sea is at, 378;
wild spy below at, 396.

Kahaookamoku and companions eaten up by the spirits, 478, 480.

friend of the king of Kauai, 476.
promised five wives, 478.
with men and Kaneopa, from Kauai on visit to Hawaii, enticed ashore by
Hanaaumoe, 476, 478.

Kahauiki, 400.

Kahaukuhonua, 24, 404.

Kahaumana, 72, 108.

bird-brother of Namakaokahai, 42, 52, 56.
changes into a rock, 60.

Kahaumokuleia, 24, 404.

Kaheawai, battle of; Lono at, 322.

Kaheka, 25, 405.

Kahiamoeleaikaaikupou, 25, 405.

Kahihikolo, war club of Kila, 168;

place of, 350–52.
trunkless koa tree of, 350, 352, 356.

Kahihiokalani, 404.

Kahikahonua, 284, 302.

Kahikele, bird of, 20.

Kahiki, encircled by Kalani, 394.

of chiefs; peaceful is, 396.
shoals of, 240.

Kahikiku, arriving at, the turtle disembarked Laukia and disappeared, 604.
as the clouds drifted toward, Laukia chanted her love plaint, 602.
Kahalaokolepuupuu of, 602.
Kahikiula arrived from, 602.
 Kahikiula begged permission to return to; departs for, to live with first wife, 602.
the turtle swam to, 604.

Kahikinaakala, war club of Niniukalani, 166.

Kahikiula and Laukiamanuikahiki equal in good looks, 602.

at bright light of the house, thought it on fire, 602.
at request of Makiioeoe, takes Laukia as wife, 602.
called his sister to come in, 608.
departed for Kahikiku to live with first wife, 602.
desire and love for, more than could be borne, 604.
desires to return to Kahikiku, 602;
wife finally consents with likelihood of following, 602.
kisses sleeping Lipewale, recognizing his sister, 604.
Laukia came to a fish-pond belonging to the wife of; changes to an old woman,
604.
Lipewale remained with her brother, 606.
Makiioeoe awakes his daughter to greet, 602.
married to Kahalaokolepuupuu, visits his parents without her, 602.
on arrival, was accompanied with red outfit, 602.
overcome with love for, Laukia weeps and chants her plaint, 602.
requested by Makiioeoe to meet his sister, 602.
son of Makiioeoe of Kuaihelani, 596;
by first wife arrived from Kahikiku; is met by parents and people, 602.

Kahiko, 12, 20, 24, 404, 406.

an ancestor of the people, 2.
eight generations from Pili’s time, 26.
the husband, 372.

Kahili, famed, named, 270.

large feather, Eleeleualani, 270.

Kahinanalo, guardian of, 242.

Kaholeiwai of Kawaihae chiefs, 536.

Kaholo, a lashing of royal canoes, 112.

Kahonunuimaeleka, real name of the hill of Haupu, 446.

Kahookuli, 284.

Kahoolana, on Kahua, pools of, flooded, 538.

Kahoolawe, foundling, born a, 4;

tradition of, 8.
Hina gave birth to, 2.
Laamaikahiki resided on west coast, then left for Tahiti, 128.
not born of Papa and Wakea, 2.

Kahoolewa Kanaloa, 286, 302.

Kahoowaha, 394.

Kahoukapu, 25, 405.

Kahu, Kualii’s trustiest, enjoined to hide his bones, 432.

Kahua, beach at, 328;

low land of Kohala, 538.

Kahuahuakai, last of chiefs slain, 162.

Kahuaike, 400.

Kahualewa, 382.

Kahuaokalani, 370, 404.

Kahuku, a pandanus, 28;

is hala-wreathed, 374.
rocky cliffs of, 238, 290.

Kahuli, turned over, contest on word, 582.

Kahulikini, 340.

Kahuna, fishing companion of Umi, 230.

Kahunas (priests) direct Lono’s battle course, 324.

Kahuoi, Aiai wished possession of pearl fish-hook, 556.

in keeping of bird Kamanuwai, 554.
 Kipapalaulu sees and steals the pearl fish-hook, 556.
pearl fish-hook of Kuula, 554, 556.
taken along by Aiai, 558.
value of, in aku fishing, 554.

Kahus (guardians), 262.

Kai, 404;
a ka hulu manu; kea, 378.

Kaiakahinalii, the flood, 378.

Kaiakea, 406.

Kaiakeakua, place of battle; sea of the god, 230.

Kaiakekua, sandy beach at, 268.

Kaialea and paddlers learn of the kapu order on food, 138;

approaching Waipio his double canoe is recognized, 136;
arrived on one of the kapu days, 136;
has his canoe confiscated, 136.
brothers confined in temple with, brought to base of the altar, 148.
brought into the presence of the king and questioned, 138.
consents to go to Waipio for food, 136.
denied having been to Hawaii before; replies falsely to various questions, 138.
Hooipoikamalanai and companions journey to die with, 146.
hoping for release he tells truth of parentage and brothers, 144.
intervenes for Kila’s life and prevails in his being taken to Waipio, 134.
Kila did not think he would be killed, 148;
visited often in confinement by Kila for questionings, 140, 146.
men in search of, placed in confinement near him, 142.
not the intent to sacrifice, 144.
ordered again confined in Pakaalana, for falsity, 144;
ordered to be kept in confinement, 138.
[xiii]paddler companions of, sought, 140;
they return secretly to Kauai, 142.
people called to see sacrifice of, 148.
questioned again by Kila, he denies being Moikeha’s son, 144.
removed to one of the king’s outhouses, 140;
reported dead, 142;
 reported in confinement to be sacrificed, 140;
return of, awaited on Kauai, 140.
royal cluster of, 4.
says Kila has gone to Tahiti, 144;
search party for, arrives at Waipio, 140, 142.
son of Moikeha, 118, 132, 146;
stubborn, is ordered to do all kinds of labor, 140.
taken to the kapu house for confinement, 140;
thinks he recognizes Kila and will be killed for deserting him, 138.
the seer, 20.
weeps at seeing his home people, 142.

Kaialea’s paddlers, 138, 140, 144.

Kaiehu, and Kapahi, rowers, 300.

Kaihalawai, mother of Lono, 256.

Kaihikapu, 394;
son of Kuhihewa, 242.

Kaihikapualamea, 24.

Kaikilani, 25, 240, 405.

accompanies Lono on his journey, 270;
they return to Hawaii, 308.
answering Lono’s suggestion to remain on Maui, advises they had better first
return to Hawaii and deal with the rebellious chiefs, 320.
arrives at Kailua from Hawaii, 302.
bids Lono recite his name chant, in which she joins, 308.
chants Lono’s name song; chant of, in response by Lono, 306.
chiefess of Puna; hears Heakekoa’s message, 272.
conspirators allege illicit relations between Kapaihiahilina and, 354.
consulted by Lono on going to Maui, 330.
desires to search for and informs Lono of the revolt, 274.
eldest of, assists Kapulani to escape, 330;
engaged in konane with her husband; evades Lono’s question on her lover’s
message, 272.
fell in sin with Heakekoa as her paramour, 270.
first chiefess ruler, 266.
finds the chiefs in open revolt at Napoopoo against Lono, 274.
 guards at all Hawaii landings found by, on return from Molokai, 274.
Heakekoa seeks to convey news of his arrival to, 270.
in love and pity for Lono, not in sympathy with revolting chiefs, 274.
Kanaloakuaana tells, the care of the government must be given Lono, 268.
kisses and weeps with Lono, 308.
Lono makes oath not to live again with; strikes her on the head with konane
board, 272.
missed by Heakekoa he follows the royal party, 270.
placed as ruler during Lono’s trip to Kauai, 352, 360;
popularity of, evidenced, 274.
reported almost killed by Lono, 274;
returns to Hawaii, 272;
resolves to renounce Heakekoa forever, 272;
revolt not countenanced by, 274.
seeing Lono playing konane, recites a chant in his honor, 302.
succeeds Keawenuiaumi as ruler of Hawaii; said to be the first instance, 266.
wife of Lono, 240, 254, 266.
with Kanaloakuaana, an uncle, had three children; without issue with Lono, 266.

Kaikipaananea, in boxing, beaten by Kepakailiula, 512.

in wrestling matches, 512.
Kepakailiula befriended by high chief under, 512.
king of Kauai, 510.
Kukaea lived on filth of, 512.
Makolea arriving at Kauai becomes wife of, 510.
one of three strong men of Oahu, 34.
thrown into the oven by Kukaea, 514.

Kaili, god, 188, 292, 324.

inherited war-god of Liloa, 188.
Lono’s war-god, 324.
Nunu and Kakohe custodians of great god, 190.
temple of, 232.
the probable god of Keawenuiaumi, 292.

Kailikahi, the friendly district, 398.

Kailikii, Laamaikahiki’s first landing place, 152–54.

Kailiu and Kailoa, 378.

Kailo, plain of, 242.

Kailua, Hawaii, Kanaloakuaana took Lono to, 268.

Umi and chiefs reside in, 228.

Kailua, Oahu, bearer of feather cloak would disappear to, 428;

favorite residence of Kualii, 432.
dry waste wind of, 388.
Hauna arrives at, 310.
Kaikilani arrives at, 302.
Kakuhihewa living at, 274.
Kalama a resident in, 396.
Kualii died at, 432;
set out from, 428;
stayed behind at, 426;
returned, on his way to, 430;
went to live in, 420.
Lono almost at, 300;
lands at, 274.
Malani, its sea wind, 386.

Kaimohola, effect of breeze at, 390.

Kaio, 396.

Kaiokane, 340.

Kaiona, Oo the bird of, 392.

Kai o Paao, the flood, 378.

Kaiopihi, Kohala general, slain, 330;

battle named, 330.

Kaiowahine, 340.

Kaipalaoa asks the king for some fish, 576.

avenges death of his father, 594.
born in Waiakea, Hilo, 574.
challenges the king’s wranglers to a contest of wits, 576.
classed an expert, sets out in search of his father, 574.
contest ends in favor of; opponents killed and cooked in the umu, 594.
 father of, educated in hoopapa, killed by Kalanialiiloa, 574.
leaves Hanalei; touches at various points; arrives at Wailua, place of bone fence,
576.
legend of the hoopapa youngster, 574.
Mainele and party land at, 460.
meets his opponents in all contests, 582–594.
on Hilo side of Wailuku stream, 442.
saw the bones of his father, 576.
seeks passage to Kauai in king’s canoes, 574.
sent to aunt to complete education, 574.
son of Halepaki and Wailea, 574.
supported by the king in his contentions, 578.
takes up profession of wrangling, 574.
towed in his canoe, lands at Hanalei, 576.

Kaipapau, 428.

Kaipuni, move on to, 400.

traveling on, 398.

Kaiua, 180.

Kaiwa, Kalani chief of, 26.

Kaiwakaapu, club furnishing food, 50.

Kaiwi, 396.

Kaiwilaniolua, 24.

Kakaalaneo, angry at absence of Eleio, orders an imu started in which to bake

him, 484.
asked Kaululaau brought home from Lanai, 488.
at mischief of Kaululaau, his son, banishes him to Lanai, 486.
attracted by the pretty cape, calls to his men to seize Eleio, 484.
did not have a feather cape in his possession, 484.
drunk with awa, orders Makolea to spread the mats; is robbed of his wife and
stood on his head, 504.
[xiv]expert spearsman, 502, 506.
fails in his spear attack on Kepakailiula, 508.
Hana filled with chiefs and men ready to fight for; holding two spears, meets
 Kepakailiula, 506.
is cut in two by war-club of Kepakailiula, 508.
Kanikaniaula consents to become wife of, 484.
king of Maui, 482, 486, 500–02;
vanquished by the champions of Kuaihelani, 34.
living at Hana, Maui, with Makolea, 504.
Makolea pledged to, through fear, 500–02.
posts spies to watch for the arrival of Eleio, 484.
questions Eleio on this thing of beauty, 484.
removed from his head-down position, 506.
seeing a fire on Lanai, sends to learn of Kaululaau, 488.
sends messengers throughout Maui to learn of chiefesses with child as the
queen, for playmates of the coming heir, 486.
skill and strength of, cause fear in other kings, 506.
surprised at failure, turns to flee, 508.
takes Kanikaniaula and they dwelt as husband and wife, 486.
terms Kepakailiula paramour of Makolea, 506.
told of Kanikaniaula rescued from death and her promises, 484–86.
vengeance on Kepakailiula, 506.

Kakaeke, 284, 302.

Kakaihili, 14.

Kakakauhanui, boards the canoe with Kila for Tahiti, 160.

fisherman, off Kalaau Point chosen a friend by Moikeha, 116, 122, 160.
his feat of endurance, 162.

Kakohe ponders on method of apportioning lands, 208;

bid to run, is given one ahupuaa, 210.

Kakohe and Nunu, advisors, priests, and favorites of Liloa, 190.

because of Hakau’s ill-treatment, conspire to give the kingdom to Umi, 190.
falling ill they seek help from Hakau which is refused them, 190.
they serve under Hakau; very angry toward Hakau, 190.

Kakuhihewa or Kuhihewa, accepts Lono’s wager, his feather kahili, against the
inside of the house, 280.
acts on advice of priest, 466–68.
admits Lono knows the chant and is beaten, 288.
advised of Hauna’s arrival from Hawaii; sends a fast runner to find and kill him,
310.
advised of the approach of the king of Hawaii, 274.
advised to ask the chiefess of Kauai for a new chant; approaching the canoe,
reaches out and holds her, and asks if a new chant of Kauai has been heard,
276.
after committing the chant to memory, goes surfing, 276.
and companions set out in their fishing canoe, 290.
and Kepakailiula rights as rulers reserved, 510.
and Lono in fishing contests, 290–98.
and servants return to the house after committing the new chant to memory,
276.
asked by Lono for fishing tackle, 296.
asks if chant is in honor of king of Hawaii, 280.
at Lono’s suggestion, makes first recital of the chant, 282.
at report of farmer, seeks for the wounded warrior, 470.
aware of Lono’s fame at hoopapa, makes ready for a contest, 274.
beaten in all his wagers, 298–300.
begs the king of Hawaii to restore him Oahu, 308;
re-pledges it, with chiefs, in a new contest, 310.
challenges Lono to name his fish caught, and wagers thereon, 204–96.
claims Kauai chant as in his honor, 278.
claims the Mirage of Mana chant, 278–82.
defeated by Lono, plans a new contest by fishing, 290.
defeats Pueonui, 468.
desired a mooring rock sent for, 292.
desires possession of Pueonui’s lands, 468.
displeased at Lono’s canoe, moored out of place, 294.
double canoe of, drifts in fierce wind; notices the holding power of Lono’s rock,
294.
easily led by Lanahuimihaku, 290.
engaged in contest with Lono over the bones of six chiefs; Hauna the subject of
dispute, 310.
favors Lanahuimihaku’s plan of contest, 278.
forbids Loli taking his ward’s things until chant in his honor is recited, 278–80.
hears Lono’s response chant, 306.
in reply to Lono’s claim to the chant said “We will know after you have recited
it,” 282.
is shown the bones of the chiefs killed in battle, identified by Hauna and
admitted by Lanahuimihaku, 314–20;
 thereby losing Oahu, 320.
king of Ewa and adjoining districts, 464.
king of Oahu, 242;
kings prior to, 408.
king of Oahu, in fear through death of Kakaalaneo, takes the name of
Kepakailiula, the victor, and adopts him, 510.
Kualii’s father a great-grandson of, 408.
Lanahuimihaku and companions former favorites with Lono join; they cause him
and his people trouble, 278.
lit. definition, 466.
living at Kailua, 274.
Lono carried to palace of, 274;
outside the palace of, 278.
loses again to Lono, 296–98.
makes the chant the subject of a contest with Lono, 280.
messenger of, passes by in ignorance, 212.
not told of Lono having already been taught it, else it would not have been a
subject of contest, 276.
offers nearly all Oahu lands as against Lono’s feather kahili, 280.
on return from surfing is urged to a contest with Lono, 276–78.
orders the people to leave the house to Lono, 288.
palace of, 274;
Kamoa, 280.
proceeds to master the chant taught by the chiefess, 276.
residing at Waikiki, Oahu, 510.
seeing the people crowd back, questions, 288.
seeks subjects for contest with Lono, 274.
sends for Kepakailiula and gives him the whole of Oahu, 510.
sends to bring Kalelealuaka and Keinohoomanawanui to Ewa, 468.
serves under Kalelealuaka, 470.
spy of, hearing the scheme, strikes a dagger at entrance of house; repeats
Kalelealuaka’s wish to the king, 466.
taunts Lono for not coming prepared to fish, 296.
thinks to beat Lono; asks again of him if Hauna has arrived, 310.
thwarted in plan to lose his shark, 296.
time of reign of, 364.
told of fruitless search for Hauna, 310.
told of his foolish bet, cries for mercy, 288–90.
told the chant is a very late one, in honor of the chiefess; he learns its title is
 the Mirage of Mana, 276.
unaware of Kalelealuaka’s acts, finds him the cause of Pueonui’s defeat, 470.
urged by Lanahuimihaku for a new contest, to save themselves, 308.
[xv]vexed, sends out a spy, 464–66.
wagers his daughter on a game of konane, 300–2;
is beaten by Lono; game stopped by arrival of Kaikilani, 302.
wagers with Lono on a canoe race and loses, 300;
on his mooring rock, 294–96;
on his fish catching, 294–98.

Kala (Monoceros unicornis) a sacred fish, 288, 304.

Kalaau Point, 116, 122, 160.

Kalae, Kau, food hidden by the gods in, 570–72.

Pupuhuluena is followed by various fishes to, 570.

Kalae, Molokai, Heakekoa lands at, 270.

Kalahuimakani, 388.

Kalahuimoku, 180.

Kalahuipuaa, wind of, 344.

Mailelaulii sisters reach, and meet Puako at, 560.

Kalahumoku, 25, 405.

Kalaihauola, supernatural grandmother of Piikea; takes the child to Oahu, 230.

Kalakaua endeavors to locate alii’s bones with a black pig, 188.

Kalakeenuiakane (Asia), 40.

definition, 106.
Holaniku synonymous with, ruled over by Namakaokahai, 50.
Namakaokahai queen of, 66;
returns to, 106.
traveled over by the lizard, Kamooinanea, 40.

Kalakoa, the two armies were encamped at, 430.

Kalalau, 396.
Kalalea, 286, 304.

Kalalii, 370, 404.

Kalama, 396.

Kalamahaaiakea, 396.

Kalamaku, 240.

Kalamaula greets Hoamakeikekula, 536.

handsome youth not of Hoamakeikekula’s rank, 536.
hears Hoamakeikekula weeping, questions her, 536.
living with his parents, 536.
seizes hold of Hoamakeikekula but agrees to thirty days’ consideration, 536.

Kalamaula, Kekaha chiefs had gone to, 418;

Paepae arrived at, 418.

Kalamea, 180.

Kalani, 4, 240.
has encircled Kalihi, 394.
languishing chief of Kaiwa, 26.
name given to high chiefs, 394.
(the heaven), 4;
the heavenly one, 14.

Kalanialiiloa, father of Kaipalaoa killed by, 574.

front in rank of profession of hoopapa, 574.
kapu chief of Kauai, 574.
recognizes and accepts challenge of boy, 576.
resided at Wailua, place of his bone fence, 576.
suggests to end the contest and sue for peace, 586, 592.
supports boy’s contentions, 576, 580.

Kalanialonoapii, 4.

Kalanianoho, 370.

Kalanihale, palace of Kualii at Kailua, 412.

Kalanikahimakaialii, young warrior of Maui, 394.

Kalanikauleleiaiwi, 25, 240, 405.

Kalanikupuapaikalaninui, 25, 405.

Kalanilonaakea, 240.

Kalanimakahakona, 4.

Kalanimanuia, 14, 24;

abused by the father, is defended by Kaunoa, 548.
beauty of, returns to him, 552.
handsome, generous boy, 548.
legend of, 548.
name and tokens left for, by Ku, 548.
on public exhibition, all nature joins in praise of, 552.
questions respecting his father, is equipped to search for him, 548.
recognized by his father, is made king of Waianae, 552.
restored to life, belittles Ihiawaawa’s suitors, 550.
son of Ku, king of Lihue, by Kaunoa, 548.
spirit of, at dusk, calls to his parents and enters the temple till morn, 548.
suspended chord, ahaula, acknowledge the beauty of, 552.
unrecognized by Ku, is killed and boy thrown in sea at Kualoa, 548.

Kalaninuikupuapaikalaninui, king of Maui, son of Piilani, 248.

Kalanioumi, 25, 360, 405;

assists Kapulani to escape, 330.
daughter of Kaikilani, 266.

Kalanipaumako, 24.

Kalanipiilani, child of Mano, 242.

youngest son of Piilani, 236.

Kalaniwahine, 24.

Kalaniwai, Kihapiilani ran away to, 236.

uplands of, 238, 242.

Kalapana, 25, 180, 405.

Kalauao, 400.

Kalaulipali and Uli, parents of Heakekoa, 270.

father of Heakekoa, 272.

Kalaunuiohua, 25, 405.

Kalaupapa, certain persons from, 270.

cliff, 272;
staying at, 300.
Heakekoa informed of royal couple at, 270.
Heakekoa inquires and sends a love message to Kaikilani at, 270, 272.
Kualii and chiefs sail for, 418.
Lono and wife sojourn at, 270.
Molokai, 104.
war to be carried into, 418.

Kalauwalu genealogy keeper, 406.

Kalehuawehe, Waikiki, a residence of Kualii, 408.

Kalei, 382, 406.

Kaleiokalani, 370, 404.

Kalelealuaka and Keinohoomanawanui, 464;

awake and see the dagger at entrance of their house, 466;
name their wishes, 464;
often spent their time wishing, 464;
taken as king’s sons-in-law, 468.
arises and destroys the house with his war club, 466–68.
at sight of warriors, tells Keinohoomanawanui to keep eye on them, 466.
brave and fearless in battle, 464.
breaks off the spear, leaving point still in the arm, 468.
definition, 466.
lying down on his war club, shows no fear, 466.
made chief ruler, 470.
participates in battles at night and secures trophies, 468.
priest advises the wish of, carried out, 466.
recognized by his spear wound, 468, 470.
retires with the daughter of the king. 468.
 seen by a farmer, is struck by a spear, 468.
sent for and brought down, 466.
taken to Ewa by order of the king, 468.
terms Keinohoomanawanui a coward, 466.
wishes personal favors of Kakuhihewa, 464.

Kalena, battle field of, 384, 414.

fighting commenced in early morning at, 414.
Kualii suggests the fight take place at, 414.

Kalenaihaleauau completes Kaipalaoa’s education, 574.

sister of Wailea and wife of Kukuipahu, 574.

Kalepolepo, in the lowlands of, 244.

Kihapiilani proceeds to, for aid to kill Piilani, 244.

Kalia, 378, 390.

Kalihi, 358, 400;

cliffs, army from Koolau on, 410. [xvi]

Kalino, 560;
Alani the wood of umu for, 566, 568.
asking for the chiefess, is bid enter the house, 564;
is beheaded, 564.
body of, cooked in the umu; bones thrown in ahuawa heap, 566.
head of, asks for the fault, 564, 566.
Kaulanapokii calls in chant for, 568.
recognized by Hikapoloa, 564.
suggests sailing to Kohala for food, 564.
turn of, 564.

Kaloa, nights of, 200.

Kalohialiiokawai, 25, 405.

Kalokalo prayer, a supplicating petition, 454.

Kalopa, 192.

Kaluaama at Haiku, 238.

Kihapiilani gathers potato vines at, 238.
Kalua, underground cooking, 332.

Kaluakoi, 288, 304.

Kaluanui, 286, 428;

of Kaluanui, 304.

Kalua-o-Aihakoko, at Kapaahu, 232.

Kaluawilinau and Mookini settle at Kohala, 116.

Kalukalu, famed grass of Kauai, 318;

mats, 318.
gauze-like kapa, 162, 318.
of Kewa, 162.

Kama, 284, 340–42;

base of, 284, 302.
(deity) 26.
Hakiawihi; Kapapaokalewa, 302.
time of, 284, 302.

Kamae, ti-leaf, trampled down, 316.

Kamahele, 24, 404.

branch denoting misfortune, 28.

Kamahualele, adopted child of, 360.

advises Kila to delay departure, 124.
and Kila call on Luukia; their vain search for Laamaikahiki, 124.
chant of, 20, 116.
companion voyager with Kila; at his wish two others join the party, 122.
directed by Kila to get the canoe ready for return, 124.
directs canoe course to meet Kakakauhanui off Kalaau Point, 116.
directs preparation of Moikeha’s double canoe for Hawaii, 114.
explains the character and duties of a priestess to Kila, 124.
ordered to procure a person for sacrifice, 126.
prophet and historian, 18; foster-son of Moikeha, 116.
seeks a sorceress to ascertain the place of Laamaikahiki’s hiding, 124.
suggests the power of an old priestess to find the chief, 124.
Kamahuola, Noiaku, 284, 302.
possibly Kamahu, 284.

Kamaile, waving grass of, 386, 416.

Kualii desired to land at, 412.
pili grass of, covered with people, 414.

Kamaiolena, 14, 24.

Kamakaaulani, 364–66, 378, 402;

agrees with Kapaahulani as to place, signs, and time of contest, and sends
him to meet the chief of Koolauloa, 366.
and brother, composers of Kualii mele, 366.
Kualii name chant to be given by, 366.
receives share of his brother’s presents, 402.
resides at Puuloa after the battle, as agreed on, 402.
suggests delay of the battle, 378.

Kamakahikikaiakea, 306.

Kamakahinuiaiku, 32.

Kamakahiwa, 24, 342.

Kamakahonu, sandy plains of, 230.

Kamakahou, the water of, 282–88, 306.

Kamakaimoku, 25, 405.

Kamakaiwa, surf of, 116.

Kamakalana, rainy region of, 94.

Kamakalewa, 284, 302.

Kamakaoholani, 370.

Kamakau (historian), 40, 394, 432.

Kamakauwahi, 372.

Kamakoa, trumpet of hala blossom at, 386.

Kamalalawalu, 2, 4, 6, 28;
advised by Kihapea and Kauhipea of battle places, 336–38;
not aware they were emissaries from Lono, 336;
destruction of sought, 338.
advised to dismantle his canoes; arrives at Kohala, plans first battle at Kaunooa,
342.
advised to press onward, 344–46.
and Lono at surfing, 332.
and Lono banter each other with proverbs of ridicule, 334.
awaking, beholds the lava red with men; is surprised; realizing he has been
trapped, sues for peace, 344;
the proposal rejected, 342.
chiefs of Lanai under control of, 424.
commends Lono’s servant, 334.
course of the two old men with, 346;
entire force of, routed, 346.
drives Lanikaula away; hears his prophetic chant, 340.
forces of, capture Kanaloakuaana; they gouge out his eyes, before killing him,
342.
hears of arrival of Kualii; sends soldiers to bring him, 424;
meets Kualii, 426.
hears report from Kauhi, 336–38;
urged to give battle to Hawaii; harbors the idea, 336.
instructs Makakuikalani to prepare the awa, etc.; inquires if it is ready and
orders it served, 332.
Kauhipaewa, first meeting with, at Hawaii, 340.
Lanai once more under rule of, 426.
Lanikaula seeks to dissuade, 338, 340; warns him, 340.
Lono incensed at, for the brutal killing of Kanaloakuaana, 344.
Lono observed landing at Punahoa by, 330.
on Lanai awaiting Haloalena, 424.
plans destroying by war the chiefs of Hawaii; sends Kauhiakama to learn the
number of its people, 334.
poetic form, 4.
prepares for war, 338;
sails with a large convoy, 340.
residing at Hana on Lono’s arrival, 330.
sends Hinau to circuit Lanai, 424.
set in his plan to wage war against Lono, 338.
 takes Lono and party to his royal residence; an uncle of Lono; wants the
pleasure of drinking awa with Lono, 332.
war canoes of, said to reach from Hamoa to Puakea, 340.
war contingent of, go to Waimea, 342–44.

Kamalanaikuaheahea must not come on hands of the people, 84.

wife of Makalii, 84, 86.

Kamalea of Piliwale, 14.

poked at the eyes of, 342.

Kamaleilani, 24, 405.

Kamanawakalamea, 180.

Kamani, Ku unlike the red, 392.

Kamano, at birth of Kaulu, saw that it had no human form, 522.

hates and ill-treats Kaulu a younger brother; threatens to kill him, 522.
second son of Kukaohialaka and Hinauluohia, 522.

Kamanonookalani, 370, 400.

Kamananui, 396.

Kamanuwai, Aiai sets out with the bird, 558.

bird, keener of the pearl fish-hook Kahuoi, 554.
for want of food, closed its eyes, 556.

Kamaole in Kula, 232.

pearl fish-hook taken by its guardian, 558.
with dropsy, is brought down from Waiahulu, 496. [xvii]

Kamapuaa and Nihooleki ready to depart, 496.

denied aid, awaits Nihooleki’s return, 496.
friend of Nihooleki, hears of his great catches, 496.
marries sister of Nihooleki, and produces identifying articles, 496.

Kamawaelualanimoku, 18;
ancient name of Kauai, 14.
born of Papa, 18.
Kamea, 25, 405.

Kamehameha, 25, 364, 405;

the Great, 20;
name song, 4.
closes from Liloa, the fifth epoch, 26.
conquering, 4.
drove the Oahu forces over the Koolau gap, 392.
epithets, 4.
erection of Puukohola temple credited to, 324.
genealogy from Wakea to, 406.
generations to, 12, 20.
kingly and divine genealogy of, 2.
Liholiho acts for, at an early age, 262.
stands alone at Kawaluna, 16.
times of, 150;
until the time of, 362.

Kamoa, palace of Kakuhihewa, 280.

Kamohoalii, 86–88, 92–96.

Kamolanuiaumi, begotten of Umi, 228.

Kamole, 24, 404.

Kamoleokahonua, 372, 404.

Kamooalewa, 370, 404.

Kamooinanea answers Aukele’s greetings, etc., 110.

Aukele thrown into pit of; two victims of, already there, 38.
called by Aukele, 108, 110.
grandmother of Aukele, 38, 86–96, 108.
great lizard, 38, 108.
overgrown by coral, 108.

Kana (god), 382.

and Haupu Hill war ended, 448.
and Hina extend on upward to the highest headland, 446–48.
at approach of Hakalanileo, directs him to have canoes hewn for voyage to
 Molokai, 438.
body of, in form of spider’s web, 448.
born in rope form at Hamakualoa, Maui, 436.
brought up in Piihonua, Hilo, where his house was built, 436;
living at, 442.
called by the birds, reaches up his hands causing them to fly away and fall on
the hill of Haupu, 440.
called to by Niheu for three days, 448.
could thank his stars for Uli’s powers, 436.
developed on the Jack and the Beanstalk principle, 436.
first-born of Hina and Hakalanileo, 436.
follows instructions and power of Haupu ceased, 448.
grew so fast and tall his house was lengthened, 436.
hearing Niheu, bent across Molokai and over Haleakala, 448.
hears of large rock falling, reaches out and stops it in middle of cliff, 444–46.
instructed by Uli for the conquering of Haupu Hill, 448.
is the chief warrior, 440.
Kaumaielieli the double canoe of, 438.
lying on the platform of the canoe, 444.
Niheu, in anger, cuts off leg of, 448.
Niheu, younger brother of, 436.
on reaching Kona, laid by doorway of Uli, 448.
questions Niheu about Hina, 446.
referred to as the only one able to recover Hina, 436.
Rocks of, 436, 448.
satisfied, his body increases, 448.
saves the canoe Kaumaielieli, 446.
sinks the double canoe by his hands only, and orders another to be hewn; it too
sinks out of sight, 438.
stands and peeps over hill of Haupu, 446.
taken and kept by Uli till it assumed human form, 436.
tells Niheu to stay on canoe, while he goes after Hina, 446.
terrible sight of frightens Hakalanileo, 438.
Uli prays for a double canoe for, 438.
Uli wakes up and feeds, 448.
wrapped in to form a large package, 444.

Kana and Niheu board canoe with their father and sail, 444.
Keauleinakahi ordered to pierce the double canoe and kill, 444.
Kolea and Ulili to look for, 444.
 legend of, 436.
make preparations to sail, 442.

Kanaenae, 382, 420.

Kanahae, 180.

Kanaheleikaukawaokele, sister of Kalamaula, 536.

Kaniakapupu, army coming down, 410.

Kanaiki, 240.

Kanakaokai, 86.

Kanakas not in Tahiti, 30, 374.

Kanaloa, 404;
an island, child of Papa, 12.
deity, 394;
depths of, 22.
drooping leaves of, 240.
face of, blackened with fire, 342.
god of Kana, shall be the, 440.
Kahoolewa, 286, 302;
kin of, 342.
of Waia, 382.
one of the major gods, 440.
sacred knife of, 20.

Kanaloakapulehu, 25, 26, 405.

Kanaloakuaana, 25, 405;

after death of, 342;
Kanaloa refers to, 342.
an uncle takes Kaikilani to wife; have three children as issue, 266.
and chiefs place guards at landings, 274.
eldest by Kaikilani, assists in the escape of Kapulani, 330.
eyes of, tatued, 342.
hears of Lono’s treatment of Kaikilani, plans an open revolt of the chiefs of
Hawaii, 274.
Kaikilani advised by, to give over the government to Lono, 268.
 Kaikilani not in sympathy with, in his plan of open revolt in her behalf, 274.
king of Maui, 26.
Koauli chant dedicated to the eyes of, 342.
tells Lono to fill the vacancy left by his father, 270.
tests Lono in the various arts of warfare; is satisfied of his proficiency, 268.
routed at battle of Kaunooa, captured at Puako, eyes of gouged out by the Maui
forces, then killed, 340.

Kanaloakuakawaiea, celebrated for valor, 326;

chief of Hilo, 322.
fled to the canoe landing and there slain, 328.
repulsed by Lono’s forces, 326.

Kanaloapulehu and followers repulsed by Lono, 322.

celebrated for valor, 326.
instructs Kanaloakuakawaiea, 322.
made prisoner, killed and laid on the altar, 326.
meeting other rebel forces return to occupy Puukohola, 324.
rebel general, 322.
repulse of, at battle of Puukohola, 326.
seeing Pupuakea’s force send men to give him battle, 326.

Kanaloapuna, 382, 420.

Kanaloawaia, 420.

Kanamuakea, 382.

Kananaola, heavy falls the rain at, 376.

Kanananuikumamao, 24, 380.

Kanananuu, 358.

Kane Kanaloa, land of, 4, 40. [xviii]

Kane and Kanaloa, creative gods; messenger sent to bring, 370;

offspring of Wakea and Papa, 18.
and Kaneapua (gods) living at Kaunolu, Lanai, 516.
and Mauli, Wahanui steps on the breasts of all three, 520.
and Wakea, 12.
beneficent and good; ever ready, 380.
 black pig of, 238.
day of, 200;
27th of the moon, 486;
agreed on as kapued for the god of Hakau, 200.
deity, 94, 394;
palm houses of, 286, 304.
eve or night of, 366.
fly off, leaving Kaneapua on Lanai, 516.
genealogical tree of, in history of Kualii, 406.
gods in form of birds, 516.
Hawaii, large of, 286, 304.
hea of the invasion by Kaulu and Kaeha, 526.
hear report from Makalii, 526.
in the calm, 320.
kapu of, 286, 304.
Kaulu and Kaeha return to, 526.
Ku, Lono and Kanaloa, 12.
nights of, 484–86;
the first of kapu period, 486.
owners of land Manowaikeoo, 526.
puzzled, sent Kolea and mate to Makalii, 524–26.
recognize the good things of Manowaikeoo, 526.
release the wind of Laamaomao, 518.
sacred or holy waters of, 82.
send two hills, threatening destruction, 518.
send younger brother Kaneapua to spring for water, 516.
the night of, 442, 486;
the first of kapu period, 486.
Wahanui vows to step on breast of, 516.
water of everlasting life of, 82–86, 90.

Kanealala, fault of, son of Kaio, 396.

Kaneapua, 72, 108.

bids the hills return below, 518.
bird brother of Namakaokahai, 52–56.
cautions Wahanui against showing the image until reaching Hawaii, 520.
changes into a log, 60.
denied a seat, bids them return, as it will be stormy, 516.
directs Wahanui to find and step on breasts of three men, 520.
 gives Wahanui a twin-bodied child image, 520.
hails Wahanui’s canoe, 516.
instructs his companions for their safety, 520.
instructs to be wrapped and acknowledged as god, 520.
learning the object and destiny of the canoe, desires passage, 516.
predictions of, secures him passage in the canoe, 518.
reaches Wahanui, who floats, while Kaneapua seeks aid of grandmother, 518.
recognized by grandmother, receives desire to aid, 518.
refutes Kilohi’s fears, 518.
sent upland for water and is left on Lanai, 516.
warns Wahanui at sight of two hills towering above them, Paliuli and Palikea,
518.
worshipped with offerings by Wahanui, 520.
younger brother of Kane and Kanaloa; god in human form, 516.

Kanehili at Kaupea, 390.

Kanehoalani, 24, 406.

Kanehunamoku, land of, recognized by Kaneapua; Wahanui and party leave the,
518.
the land of, appears in form of a dog, 518.

Kaneikaapua, brother of Namakaokahai, 42.

Kaneikauaiwilani, 25, 405.

Kaneikauauwilani, 14.

Kaneimakaukau, 380.

Kanemakaiahuawahine, 394.

Kanemakua, 94.

Kanemoe, 72, 108.

bird-brother of Namakaokahai, 42, 52–56.
journeys with Aukele to Kuaihelani, 108.
makes a substitute spirit, 108.
ordered to kill Aukele, changes into a rock, 60.

Kanemuka, god of Kualii, 472.

Kanenaenae, 88.

Kanenaiau, guard of water-hole, 86–88, 96.

Kaneohe, Kualii leaves, by sea, 428.

while they oppose, 396.

Kaneopa and companions asleep as Halalii and spirits enter, 480.

angry, declines Hanaaumoe’s call to come ashore, 480.
answers Hanaaumoe we are not asleep, 478.
at approach of day, limps to his canoe and sails for Kauai, 480.
designates Hanaaumoe the great flatterer, 480.
digs and sits in a hole under the door-sill, 478.
informs the king and people of Kauai of his companions being eaten by the
Oahu spirits, 480.
lame fellow, 476.
listens to Hanaaumoe’s talk, 478.
sorry for his chief, at a loss how to save him, 478.

Kanepaiki, small god of wrangling profession, 582.

Kanepohihi, advises Kila as to his voyage, 162.

exchanges greetings with Kila, 162.
cooking bananas, 162.
supernatural rat, 162;
nibbles net of Makalii, 164.
visited by Kila for food, 164.

Kaneulupo, god of wrangling profession, 582–84, 592.

Kaniaupiiikalani spear, 206.

Kanikaa, 558;
spirit chief of Hawaii, 476.

Kanikaniaula, at death of, is placed in a puoa tomb, 484.

becomes wife of Kakaalaneo, 486.
brought back to life by Eleio, 484.
brought feather cape from Hawaii, 484.
coming to Kaupo, marries a person of low rank, 482–84.
consents to become wife of Kakaalaneo and presents a feather cape, 484.
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