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Question 4 In a surprise announcement, NASA released details of a major contract with Lockheed Martin (LMI that would increase LMT's market value by $20

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Question 4 In a surprise announcement, NASA released details of a major contract with Lockheed Martin (LMI that would increase LMT's market value by $20 billion. It was widely expected by the market that this contract would be awarded to LMT's maior competitor Boeing (BA). Assume that Boeing has million shares outstanding and Lockheed Martin has 400 million shares outstanding. Prior to this announcement, the market felt that the probability of Boeing winning the contract was 60% and that Lockheed Martin's chance was only about 40%. What do you anticipate will happen to Lockheed Martin's stock prices are a result of this surprise announcement? To answer this question, you must calculate how much stock price will increase or decrease. (10 points)

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