CHAPTER 1

An Overview of Financial Management

and the Financial Environment

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Figure 1-1 Providers and Users: Cash Now
versus Claims on Risky Future Cash

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Figure 1-2 Diagram of the Capital Allocation Process

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Table 1-1 Summary of Major Financial Instruments

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Figure 1-3 Federal Budget Surplus/Deficits and
Foreign Trade Balances (Billions of Dollars)

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Figure 1-4 Business Activity, Interest Rates,
and Inflation

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Table 1-2 Stock Exchange Listings
and Total Market Value

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Table 1-3 Stock Trading Venues and Trading Activity

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Figure 1-5 S&P 500 Stock Index Performance

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Figure 1-6 The Real Estate Boom: Housing
Prices and Mortgage Rates

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Figure 1-7 The Determinants of Intrinsic Value:
The Big Picture

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