Question 3Partially correctMark 3.00 out of 4.00 Not flaggedFlag question Question text Valuation Using the PE Multiple The following table provides summary data for Applied Materials Inc. and its competitors, KLA Tencor Corporation and Lam Research Corporation. (in millions) Applied Materials KLA Tencor Lam Research Company assumed value - $9,790 $11,529 Equity assumed value - $8,987 $13,244 NOPAT $1,444 $440 $674 Net income $1,377 $421 $711 Net nonoperating obligations (assets) $(1,369) $803 $(1,715) Common shares outstanding 1,160.0 157.9 158.5 a. Compute the price to net income ratio for both KLA Tencor Corporation and Lam Research Corporation. Round answers to two decimal places, when applicable. Price to Net income ratio KLA Tencor Answer 21.35 Lam Research Answer 18.63 b. Use KLA Tencor Corporation and Lam Research Corporation as comparables, along with the price to net income ratios from part a, and then estimate for Applied Materials Inc. its equity intrinsic value and its equity intrinsic value per share. Round equity intrinsic value to the nearest million. Round equity intrinsic value per share to two decimal places. KLA Tencor Corporation Equity intrinsic value Answer 23,414.73 million Equity intrinsic value per share Answer 23.73