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... optimize the presence of excess cash balances in the business - Increases in plant, property, and equipment (PP&E) + Decreases in plant, property, and equipment Firms invest most of their capital...CHAPTER AN OVERVIEW OF FINANCIAL MANAGEMENT This chapter provides an overview of financial management and should give you a better understanding of the following: (1) how finance fits... idea of how profitably corporate management is running the business III OTHER RELATIONSHIPS A Market Valuation Ratios Price Earnings Ratio (P/ E) = P0 / EPS a P0 = Current Market Value (price) of