3.3% 30% Exhibit 1: Selected Financial Data for Al-Maram Company. Tax Rate Weight of Debt Weight of Equity 70% Avg. 10 Bond Yield 3.23% Market return 14.3% Market nak Premium 11.1% beta 0.55 Cost of debt 4.97% Cost of equity 9.28% WACC 7.94% Terminal growth 2.35% Exhibit 2: Al-Maram Company Income Statement (SAR thousands) In Millions of Saad Riyal 20000 Revenue 20X1 14339 13,936 14613 20X2 2003 2004 20X5 30x6 15.609 16.521 17,336 18,156 Cost of Revenue 8.816 8352 8,913 9.777 -10,447 10,974 11,511 Gross Profit 5523 5700 5832 6,974 6162 Opening Expe 1005 3,000 3.108 3234 3.299 3431 3,346 EBIT 2,518 2,584 2,592 2.598 2,775 2,931 3,099 Others -58 -20 -72 -74 -77 83 Finance cost 351 401 450 427 -354 INT 2.324 2,202 2215 2.245 2,445 2,623 2,827 Tas -74 42 67 -73 -79 85 Nos-Controlling Imeres 2 22 T 23 Net Income Available to Common Shareholders 2.148 2,182 2,142 2.171 2.364 2,537 1.735 Exhibit 3: Al-Maram Company Cash Flow Statements (SAR thousands) In Millions of Saudi Riyals Cash Flow from Operations Not Income Add Black non-cash expenses Changes in Working Capital Net Cash Generated from Operating Activities Investing Activities Additions to PPE Other investing activities Net Cash Used in Investing Activities Financing Activities Changes in overall borrowings Dividends Paid Not Finance Cost Paid Purchase and settlement of Treasury Share Payment of Profiton Perpetu Retirement of Perpetual Sukuk Transactions with non-controlling IF 20000 20X1 20%2 2003 2004 20X5 30X6 2,182 2.342 2171 2364 2.537 2,735 2,000 2.863 2.952 2,900 3,066 3,203 79 -376 -149 127 121 4.361 4,629 4,974 5,391 5.724 5346 2,797 2,500 2.500 2.500 4.500 -2,500 436 464 -330 534 -537 -712 -3.233 2,964 -2,830 3034 3.037 -3,212 1,183 -190 -700 617 -565 -954 -718 -709 -719 354 -967 -1,097 -461 -450 427 407 -388 -354 -74 -35 -60 -62 45 -72 -18 0 0 -1,700 0. 0 0 . 6 7 7 7 Net Cash Generated (used in) 832 -153 -3,116 -1.900 -1,934 -4,975 -2.463 Financing Activities Cumency translation impact 31 9 10 11 12 14 12 Net increase decase) inch and 1958 1,461 -1,435 262 443 733 190 Cash at Dec 31 431 1.392 457 719 1,162 1,395 b) Calculate the value of Al-Maram Company. (20 points) c) Calculate the value of Al-Maram's stock. (20 points)