Lockheed Martin (LM) the aerospace and defense conglomerate, has a stellar dividend history, with steadily increasing quarterly payments since 1995. In recent years, however, the rate of dividend growth has declined from a solid 15.6% in 2014 to 7.2% in 2017 2017 and then stabilize at a healthy 7.2% thereafter. It is observed that the last dividend was $4.60. A 10% expected rate of return is assumed and the number of years over which the growth rate will transition is four. What is the Intrinsic value of Lockheed Martin (LM)?

Lockheed Martin (LM) the aerospace and defense conglomerate, has a stellar dividend history, with steadily increasing quarterly payments since 1995. In recent years, however, the rate of dividend growth has declined from a solid 15.6% in 2014 to 7.2% in 2017 2017 and then stabilize at a healthy 7.2% thereafter. It is observed that the last dividend was $4.60. A 10% expected rate of return is assumed and the number of years over which the growth rate will transition is four. What is the Intrinsic value of Lockheed Martin (LM)?

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter12: Corporate Valuation And Financial Planning

Section: Chapter Questions

Problem 3P: Smiley Corporations current sales and partial balance sheet are shown here. Sales are expected to...

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