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Lockheed Martin (LMT) received a government grant that will spark growth to an abnormal level over the next four years. During this time period, the
Lockheed Martin (LMT) received a government grant that will spark growth to an abnormal level over the next four years. During this time period, the current dividend of $11.20 is expected to grow at 14% during this period and then revert back to the current growth rate of 6.5%. LMT currently has a beta of .85, the risk-free rate is 3.25%, and the required return on the market is 9.50%. Use the Non-constant Growth Model to find the current value of LMT.
Please explain how to solve this equation using the BAII financial calculator
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