Lockheed Martin	Northrop Grumman	Boeing
% of sales derived from defense and space operations	0.93	0.91	0.46
BETAS
Value Line	0.60	0.70	1.05
Calculated against the S&P 500
5 years	0.36	0.34	0.80
21 months	0.38	0.31	1.03
60 days	0.34	0.27	1.45
Calculated against the NYSE Composite
5 years	0.49	0.43	1.00
21 months	0.44	0.36	1.17
60 days	0.37	0.30	1.62
Tax rate	35.00%	35.00%	35.00%
Market value Debt/Equity ratios	0.41	0.64	0.535
Market Risk Premium	6.00%	6.00%	6.00%
Risk Free Rate	4.56%	4.56%	4.56%

Debt Amount ($Millions)	Coupon	Maturity	Price ($)	Yield to Maturity
$202	7.63%	2/15/05	106.175	3.91%
$298	6.63%	6/1/05	105.593	3.39%
$249	6.88%	11/1/06	110.614	3.48%
$175	8.10%	11/15/06	112.650	4.05%
$349	9.75%	4/1/12	129.424	5.47%
$597	6.13%	2/15/13	103.590	4.66%
$398	8.75%	8/15/21	127.000	6.24%
$300	7.95%	8/15/24	126.951	5.73%
$247	7.25%	6/15/25	114.506	6.05%
$249	8.75%	9/15/31	131.000	6.34%
$173	8.63%	11/15/31	138.974	5.81%
$393	6.13%	2/15/33	103.826	5.85%
$300	6.63%	2/15/38	106.715	6.15%
$100	7.50%	8/15/42	119.486	6.17%
$173	7.83%	4/15/43	132.520	5.78%
$125	6.88%	10/15/43	110.084	6.19%

	Boeing	Lockheed Martin	Northrop Grumman
% of sales derived from defense and space operations	46%	93%	91%
BETAS
Value Line	1.05	0.60	0.70
Calculated against the S&P 500 (End date, June 2013)
5 years	0.80	0.36	0.34
21 months	1.05	0.38	0.31
60 days	1.45	0.34	0.27
Calculated against the NYSE Composite (end date June 2013)
5 years	1.00	0.49	0.44
21 months	1.17	0.44	0.36
60 days	1.62	0.37	0.30
Tax rate	0.35	0.35	0.35
Market value Debt/Equity ratios	0.535	0.41	0.64
Market Risk Premium	6%	6%	6%
Risk Free Rate	4.56%

Debt Amount (millions)	Coupon	Maturity	Price	Yield to Maturity
$202	7.625%	2/15/2005	106.175	3.911%
$298	6.625%	6/1/2005	105.593	3.393%
$249	6.875%	11/1/2006	110.614	3.475%
$175	8.1%	11/15/2006	112.65	4.049%
$349	9.75%	4/1/2012	129.424	5.47%
$597	6.125%	2/15/2013	103.59	4.657%
$398	8.75%	8/15/2021	127.0	6.239%
$300	7.95%	8/15/2024	126.951	5.732%
$247	7.25%	6/15/2025	114.506	6.047%
$249	8.75%	9/15/2031	131.0	6.337%
$173	8.625%	11/15/2031	138.974	5.805%
$393	6.125%	2/15/2033	103.826	5.85%
$300	6.625%	2/15/2038	106.715	6.153%
$100	7.5%	8/15/2042	119.486	6.173%
$173	7.825%	4/15/2043	132.52	5.777%
$125	6.875%	10/15/2043	110.084	6.191%

1. 

Remove the financing effect from equity beta (Hamada equation): Be = Ba(1 + D/E(1-T)) which is the same as B, = B,(1 + (D/E) *(1-T)) Ba