User Account

All Pages

Valuation using the pb multiple

Assignment Help Basic Computer Science
Reference no: EM132184976

Valuation Using the PB Multiple

The following table provides summary data for Cerner Corporation (CERN) and its competitors, Allscripts Healthcare Solutions (MDRX) and McKesson (MCK).

(in millions) CERN MDRX MCK

Company assumed value -- $1,960 $23,685

Equity assumed value -- $1,624 $21,268

Net operating assets $1,484 $1,620 $ 9,487

Book value of equity $2,834 $1,284 $ 7,070

Net nonoperating obligations $(1,350) $ 336 $ 2,417

Common shares outstanding 172.1 shares 172.4 shares 197.0 shares

(a) Compute the PB ratio for both MDRX and MCK. (Round your answers to two decimal places.)

MDRX ?

MCK ?

(b) Use MDRX and MCK as comparables, along with the rounded PB ratios from part (a), and then estimate for Cerner its equity intrinsic value and its equity intrinsic value per share. (Round the equity intrinsic value to the nearest million and the value per share to the nearest cent.)

(c) Using the rounded average calculated above, calculate the following:

Equity intrinsic value $Answer?

Equity intrinsic value per share $Answer?

Reference no: EM132184976

Questions Cloud

Co-insurance rule and report to the butterfields : Describe the 80% co-insurance rule and report to the Butterfields how this rule affects their homeowner's coverage.
Is the rhythm an important part of the piece : View the video above, Jimi Hendrix "Fire" Live at Stockholm Sweden 1969. You are supposed to use your knowledge gained in class by including in your report.
Example of the concentration targeting strategy : Which of the following is an example of the concentration targeting strategy?
Recogntition of handwritten mathematical expressions : Recogntition of Handwritten Mathematical Expressions - You have the source code but some part of the code has some errors. So you need to correct these errors
Valuation using the pb multiple : The following table provides summary data for Cerner Corporation (CERN) and its competitors, Allscripts Healthcare Solutions (MDRX) and McKesson (MCK).
How are symbols and metaphors used in the poem : How are symbols and metaphors used in the poem? How do these elements enrich the poem and deepen your understanding of its themes?
What is the sum of annual ordering cost and holding cost : What is the economic order quantity, Q? What is the sum of annual ordering cost and holding cost?
When is this form of sentencing most likely to be effective : list its pros and cons. Overall, when is this form of sentencing most likely to be effective? Why?
What you are looking forward to in future terms : Write a one to two-page reflection paper on your first term as a new University student. You could touch on the following:Your grade will be based.

Reviews

Write a Review

Basic Computer Science Questions & Answers

  Price of ethanol increases

How can i explain it in through the graph: Assume that the supply curve for corn is upward-sloping. In the market for corn, a primary input in the production of ethanol, how will the total surplus change when the price of ethanol increases?

  Write a program to perform spell-checking on a text file

Automated spell checkers are used to analyze documents and locate words that might be misspelled. These programs work by comparing each word in the document to a large dictionary (in the non-Python sense) of words. If the word is not found in the ..

  Why might an active policy approach

Why might an active policy approach be more politically popular during a recession?

  Quarterly estimated time series model

Suppose we have a quarterly estimated time series model as follows:

  Find the repeated value after the array is sorted

If a value in an array of base type int occurs twice-for example, both b[0] and b[5] are 7-and you sort the array by using the method Merge Sort.

  Write 10 basic sql statements

Write 10 SQL statements against the STUDENT schema you created for practice lab 1. Your statements should run error-free and should be valid.

  System functional requirements

1. System must ask a user to make an account before he/she can access any features.

  Write a recursive function named print range

Write a recursive function named small count that, given the pointer to the root of a BST and a key K, returns the number of nodes having key values less than or equal to K. Function small count should visit as few nodes in the BST as possible.

  Online address book to keep track of the names

In C++, Using classes, design an online address book to keep track of the names, addresses, phone numbers, and dates of birth of family members, close friends, and certain business associates. Your program should be able to handle a maximum of 500..

  Transmission speeds exploding from one generation

Discuss how physical layer changes have contributed to transmission speeds exploding from one generation of WLAN device to the next.

  Case that involves alter-ego liability

Using findlaw, research a case that involves alter-ego liability. Define the term "alter-ego" and list the elements the court considered when determining.

  Which produced the best results for your research

Compare the volume and quality of information you find with each search tool. Which tool is the easiest to use? Which produced the best results for your research? Why?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd