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Eclipsys $1,100 McKesson $17,819 The following table provides summary data for Cerner Corporation and its competitors, Eclipsys Corporation and McKesson Corporation. (in millions) Company
Eclipsys $1,100 McKesson $17,819 The following table provides summary data for Cerner Corporation and its competitors, Eclipsys Corporation and McKesson Corporation. (in millions) Company assumed value Center Equity assumed value $1,100 $15,970 $1,328 $1,132 Net nonoperating obligations (assets) $196 Net operating assets Book value of equity Common shares outstanding (a) Compute the PB ratio for both Eclipsys and McKesson. (Round your answers to two decimal places.) Eclipsys 0 McKesson 0 $268 $8,354 $268 $6,505 $0 $1,849 80.4 shares 54.0 shares 288.8 shares (b) Use Eclipsys and McKesson 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.) Average of the two rounded ratios in (a) above 0 (Round to two decimal places.) Using the rounded average calculated above, calculate the following: Equity intrinsic value $ 0 million Equity intrinsic value per share $ 0
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