5. Loews Corporation (ticker symbol: L), a specialty insurance company with investments in several ancillary businesses, has been decribed as a mini-Berkshire Hathaway). The company is comprised of the following component parts: Entity Publicly Traded? Loews' Stake CNA Financial (CNA) Yes 89% Diamond Offshore Drilling (DOFSQ) Yes 53% Loews Hotels No 100% Boardwalk Pipeline No 100% Consolidated Container No 100% a. You wish to determine the "fair value of Loews using a sum-of-the-parts analysis. You estimate the vlaue of Loews Hotels is $2 billion, the value of Boardwalk Pipeline is $3 billion, and the value of Consolidated Container is 1.2 billion. Loews also has $3.5 billion in cash and other investments, and it carries debt of $1.8 Billion. Using market closing prices as of Monday, February, 28, 2022, determine the value of Loews Corporation using the sum-of-the-parts method. Note: for DOFSQ, use the estimated enterprise value rather than market capitalization. b. Compare your answer in part a. to the actual market capitalization of Loews on 2/28/22. Does Loews appear to be overvalued, undervalued, or fairly valued? c. Provide one qualitative reason why your conclusion in part b. might be wrong