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3 The following table provides summary information for Red Inc., and its competitors Blue Corp. and Green Enterprises. 4 5 a) Use the information
3 The following table provides summary information for Red Inc., and its competitors Blue Corp. and Green Enterprises. 4 5 a) Use the information to compute the Price to NOPAT ratio for Blue and Green. 6 7 b) Using the Price to NOPAT ratio., and with Blue and Green as comparables, compute Red's: 8 9 Company Intrinsic value; Equity Intrinsic Value, and Equity Intrinsic Value per share 10 11 12 c) Use the information to compute the Price to Net Income ratio for Blue and Green. 13 14 d) Using the Price to Net Income ratio., and with Blue and Green as comparables, compute Red's: Equity Intrinsic Value, and 15 16 Equity Intrinsic Value per share 17 18 19 (amount in $ millions) Red Blue Green 20 Company Assumed Value 76.25 140.94 21 Equity Assumed Value 70.40 131.30 22 NOPAT 34.20 7.42 22.13 23 Net Income 33.84 7.43 21.79 24 Net Nonoperating Obligations 41.20 7.85 37.64 25 Common Shares Outstanding 22.98 7.78 11.54
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