Valuation Using Price-to-NOA Multiple The following table provides summary data for Cerner Corporation and its competitors, Allscripts Healthcare Solutions Inc. and McKesson Corporation.

(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 (assets) . . . . . . . . . . . . . . . . $(1,350) $ 336 $ 2,417 Common shares outstanding. . . . . . . . . . . . . . . . . . . . . . . 172.1 shares 172.4 shares 197.0 shares Required

a. Compute the price to net operating assets ratio for both Allscripts Healthcare and McKesson.

b. Use Allscripts Healthcare and McKesson as comparables, along with the price to NOA ratios from part

a, and then estimate for Cerner its company intrinsic value, its equity intrinsic value, and its equity intrinsic value per share.