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Lockheed Martin

Acquired

The Cost Plus Pricing of Lockheed Martin

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Lockheed Martin makes a bunch of money and at the end, they only have 8%. And that's basically contractually figured out. I think whenever one of these contracts gets bid out, the big defense contractor says, I'm going to slap 8, 9, 10, 11% on top of it. That's exactly why their financial statements look the way they do is because that's exactly how the government decides to fund it.

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