(Chapter 15) Please answer all questions with a red X next to them. Thank you!

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) Company assumed value Equity assumed value NOPAT Applied Materials $1,444 1,377 $(1,369) 1,160.0 KLA Tencor $10,000 9,197 440 479 $803 157.9 Lam Research 11,739 $13,454 674 $769 $C1,715) 58.5 Net income Net nonoperating obligationns fassets Common shares outstanding a. Compute the price to net income ratio for both KLA Tencor Corporation and Lam Research Round answers to two decimal places, when applicable. Price to Net income ratio KLA Tencor Lam Research 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 0 millio Equity intrinsic value per share Check