For the companies Lockheed-Martin (LMT) & Northrop-Grumman (NOC) Use Macrotrends data to calculate Return on Sales, Return on Assets, Debt Ratio, Inventory Turnover, Lead Time for each company 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 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% Find the current stock price for each company Based on the above calculations, which company's stock would you buy, and provide your reasoning (If neither or both, explain reasoning)

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
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For the companies Lockheed-Martin (LMT) & Northrop-Grumman (NOC)
Use Macrotrends data to calculate Return on Sales, Return on Assets, Debt
Ratio, Inventory Turnover, Lead Time for each company
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
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%
Find the current stock price for each company
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) Use Macrotrends data to calculate Return on Sales, Return on Assets, Debt Ratio, Inventory Turnover, Lead Time for each company 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 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% Find the current stock price for each company 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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