Use the Information for the Question(s)below

question 75

Essay

Use the information for the question(s)below.
In a surprise announcement,NASA released details of a major contract with Lockheed-Martin (LMT)that would increase LMT's market value by $7.5 billion.It was widely expected by the market that this contract would be awarded to LMT's major competitor Boeing (BA).Assume that Boeing has 800 million shares outstanding and Lockheed Martin has 425 million shares outstanding.Prior to this announcement,the market felt that the probability of Boeing winning the contract was 90% and that Lockheed-Martin's chance was only about 10%.
-What do you anticipate will happen to Lockheed-Martin and Boeing's stock prices as a result of this surprise announcement?

---

Definitions:

Traditional Value Chains

The sequential process of adding value to raw materials through various stages of production, leading to finished products ready for the consumer market.

Entrepreneurship Faculties

Academic or educational departments within institutions that specialize in teaching and researching entrepreneurship and related business practices.

Effective Entrepreneurs

Entrepreneurs who not only achieve their business goals but do so in a manner that is efficient, ethical, and sustainable.

Incoming Students

New entrants to an educational institution, such as a college or university, who are starting their studies.