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Investment to Maximize Shareholder Wealth

How are valuation techniques applied to external investment strategies or to internal investment strategies? Please explain the technique and whether the technique is being applied to an external or internal investment, or to both types of investment.

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Valuation techniques applied to external or internal investment strategies:

Valuation techniques are applied to external investment strategies and to internal investment strategies in different situations. First, research shows that an understanding of appropriate valuation techniques is vital. The focus on shareholder value and wealth creation has resulted in managers, auditors, external and internal financial analysts, and financial institutions adopting common models as a starting point for choosing among capital projects, financing capital projects, and reporting firm decisions through financial reports and other media."

Second Venture references that, "Business Valuation has become an intrinsic part of the corporate landscape. The ...

Solution Summary

This response discusses various techniques and strategies in investment in order to maximize a shareholder's wealth.