For the companies Lockheed-Martin (LMT) & Northrop-Grumman (NOC) • • • [5 pts] Use Macrotrends data to calculate Return on Sales, Return on Assets, Debt Ratio, Inventory Turnover, Lead Time for each company [4 pts] Use Fintel to determine EPS forecasts for 2024-2027 for each company, and use those to calculate an average earnings growth rate for each - https://fintel.io/sfo/us/Imt https://fintel.io/sfo/us/noc [4 pts] Assuming MARR = WACC + 3%, calculate a fair market price for the stock of each company, assuming that earnings grow at the calculated rate for the next 50 years, with the following WACC LMT: 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, and provide your reasoning (If neither or both, explain reasoning)

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
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For the companies Lockheed-Martin (LMT) & Northrop-Grumman (NOC)
•
•
•
[5 pts] Use Macrotrends data to calculate Return on Sales, Return on Assets, Debt
Ratio, Inventory Turnover, Lead Time for each company
[4 pts] Use Fintel to determine EPS forecasts for 2024-2027 for each company, and use
those to calculate an average earnings growth rate for each
-
https://fintel.io/sfo/us/Imt
https://fintel.io/sfo/us/noc
[4 pts] Assuming MARR = WACC + 3%, calculate a fair market price for the stock of
each company, assuming that earnings grow at the calculated rate for the next 50
years, with the following WACC
LMT:
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, and
provide your reasoning (If neither or both, explain reasoning)
Transcribed Image Text:For the companies Lockheed-Martin (LMT) & Northrop-Grumman (NOC) • • • [5 pts] Use Macrotrends data to calculate Return on Sales, Return on Assets, Debt Ratio, Inventory Turnover, Lead Time for each company [4 pts] Use Fintel to determine EPS forecasts for 2024-2027 for each company, and use those to calculate an average earnings growth rate for each - https://fintel.io/sfo/us/Imt https://fintel.io/sfo/us/noc [4 pts] Assuming MARR = WACC + 3%, calculate a fair market price for the stock of each company, assuming that earnings grow at the calculated rate for the next 50 years, with the following WACC LMT: 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, and provide your reasoning (If neither or both, explain reasoning)
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