Present value and considering the risk of inflation

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Lockheed Martin and CACI International want to sell me a bond that will pay me  $100,000 in one year.

Using the concept of present value and considering the risk of inflation, high interest rates, etc. what would I pay for this bond today?

1.How would I determine the discount rate given the following financial stats for both companies

If I would pay more than $100,000 for  Lockheed Martin  how would I calculate that  and why?

Lockheed Martin

BETA 0.65

Current Ratio: 1.25.

Current debt/equity: 267.16

Short Ratio: 4.00

Profit Margin 6.05%

Return on Assets: 6.76%

Return on Equity: 106.74

Cash Flow: operating: 3.96B - levered free:2.37B

CACI International Inc.

BETA: 1.38

Current Ratio: 1.53

Total debt/equity: 62.17

Short Ratio: 11.80

Profit Margin: 4.26%

Return on Assets: 7.61%

Return on Equity: 14.52%

Cash Flow: operating: 278.26M - levered free 223.62M

 

 

Reference no: EM13270504

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