For the companies Lockheed-Martin (LMT) & Northrop-Grumman (NOC)•••[5 pts] Use Macrotrends data to calculate Return on Sales, Return on Assets, DebtRatio, Inventory Turnover, Lead Time for each company[4 pts] Use Fintel to determine EPS forecasts for 2024-2027 for each company, and usethose to calculate an average earnings growth rate for each-https://fintel.io/sfo/us/Imthttps://fintel.io/sfo/us/noc[4 pts] Assuming MARR = WACC + 3%, calculate a fair market price for the stock ofeach company, assuming that earnings grow at the calculated rate for the next 50years, with the following WACCLMT:NOC:8.00%8.25%[2 pts] Find the current stock price for each company[5 pts) Based on the above calculations, which company's stock would you buy, andprovide your reasoning (If neither or both, explain reasoning)

Lockheed-Martin (LMT): Return on Sales (ROS):ROS = Net Income / RevenueYou can find these values…

Answered: For the companies Lockheed-Martin (LMT)…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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consider the following data RF= 4.15% RPM = 5.35% and B= .85 based on the CAPM approach what is the cost of equity from retained earnings?
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Suppose a company has had the historic sales figures shown below. What would be the forecast for next years sales using the average approach?
Estimating Share Value Using the DCF Model Following are forecasts of sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of December 31, 2018, for Humana. Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places. Reported Forecast Horizon Period Terminal $ millions Sales NOPAT NOA 2021 2022 2020 2018 2019 $57,472 $58,326 $59,192 $60,072 $60,964 3,179 3,218 3,140 3,052 3,102 4,844 4,657 4,718 4,781 4,592 Period $61,568 3,244 4,887 Answer the following requirements with the following assumptions: Assumptions Terminal period growth rate 1% Discount rate (WACC) 7.8% Common shares outstanding 135.60 million Net nonoperating obligations (NNO) $(5,569) million Noncontrolling interest $0 million NNO is negative because Humana's nonoperating assets exceed its nonoperating liabilities. (a) Estimate the value of a share of Humana's common stock using the…
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