Explain the role of valuation in the field of financial management?
Please List References.
1. Explain the role of valuation in the field of financial management? What are several examples of how a company might use the valuation process?
2. What are the risks of bias and how concerned should financial managers be about bias in the process of valuation and equity research? What specific things can analysts (or students) do to prevent bias from contaminating valuation and equity research work?
3. It might be observed that to profit from valuation and equity research, an analyst needs to assume or believe that markets are inefficient. Do you agree with that view or is it appropriate to assume that markets are efficient and that valuation and equity research can be profitable because they deliver superior insight about future performance?