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 ‫ﺍﻟﺠﺎﻤﻌـﺔ ﺍﻹﺴﻼﻤﻴـﺔ – ﻏـﺯﺓ‬
‫ ﺇﺩﺍﺭﺓ ﻤﺎﻟﻴـﺔ ﻤﺘﻘﺩﻤﺔ‬/‫ﺍﻟﻤﺴﺎﻕ‬ ‫ﻜﻠﻴـــﺔ ﺍﻟﺘﺠــــــﺎﺭﺓ‬
‫ ﺜﻼﺙ ﺴـﺎﻋــﺎﺕ‬/‫ﺍﻟﺯﻤﻥ‬ ‫ﺒﺭﺍﻤﺞ ﺍﻟﺩﺭﺍﺴﺎﺕ ﺍﻟﻌﻠﻴــــﺎ‬
‫ﺍﻻﻤﺘﺤﺎﻥ ﺍﻟﻨﻬﺎﺌﻲ ﻟﻠﻔﺼل ﺍﻟﺩﺭﺍﺴﻲ ﺍﻟﺜﺎﻨﻲ‬
2005/2004 ‫ﻤﻥ ﺍﻟﻌﺎﻡ ﺍﻟﺠﺎﻤﻌﻲ‬
.‫ﻡ‬2005/6/11 ‫ﺍﻟﺴﺒﺕ‬
..………………… / ‫ …………………………………… ﺍﻟﺭﻗﻡ ﺍﻟﺠﺎﻤﻌﻲ‬/‫ﺍﺴﻡ ﺍﻟﻁﺎﻟﺏ‬

Al Quds Co. Roe Last Year was only (3%) but its management has developed. New
operation plan designed to improve thinks. The new plan calls for fatal debt fratio of
(60%) Which will result in interest charges of $ 300,000 Per year. Management
projects an EBIT of $ 1,000,000 on sales of $ 10,000,000 and it expects to have a total
assets turnover ratio of 2.0 Under these conditions, the tax rate will be (40%) it the
changes are made, what return on equity will the comfrey earn?

A- (20%) B- (21%) C- (22%) D- (23%)

Weatherford Industries Inc. has the following ratios: A*/S0 = 1.6; L*/S0 = 1.4; profie
Growth rate margin = 1.10; and dividend payout ratio = 1.45. or 45 percent. Sales last
year were $100 mil- Lion Assuming that these ratios will remain constant. Use the
AFN formula to determine the maximum growth rate Weatherford can achive without
having to employ nonspontanous external funds.
A- (2.8%) B- (3.8%) C- (4.8%) D- (5.8%)

If a firm borrow $1,000, and the loan is to be repaid in three equal payments at the end
of each of the next three years. The lender charges a (6%) imterest rate on the loan
balance that is outstanding at the beginning of each year. What should be each
payment?
A- ($374.11) B- ($384.11) C- ($394.11) D- ($404.11)

Longstrect Communications Inc. (LCI) has the following capital structure, which it
considers WACC to be optimal:

Dept 25%
Preferred Stock 15
Common Stock 60
Total capital 100%

LCI's tax rate is 40 percent and investors expect earnings and dividends to grow at a
constant rate of (9) percent in the future. LCI paid a dividend of $3.60 per share last
year (D0) and its stock Currently sells at aprice of $60 per share. Treasury bonds yield
11 percent. An average stock has a 14 percent expected rate of return; and LCI's beta
is 4.51. The terms would apply to new security offerings:

1
Preferred: New preferred could be sold to the public at a price of $100 Per share, with
a dividend of $11. Flotation costs of $5 per share would be incurred.

Debt: Debt could be sold at an interest rate of 12 percent.

a. Find the component costs of debt, preferred stock; and common stock. Assume
LCI does not have to issue any additional shares of common stock.
b. What is the WACC?
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