In this session, we continued our analysis of pricing by looking at applications. We started with the question of whether your comparable firms samples should be tightly defined (and small) or broadly defined (and large) and how to control for differences across firms. We then used the cumulated knowledge to pass judgment on a series of naive pricing recommendations.
Start of the class test: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/relvaltests2.pdf
Post Class Test: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session19Ctest.pdf
Post Class Test Solution: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session19Csoln.pdf