A listed company in a high technology industry has decided to value its intellectual capital using the Calculated Intangible Value method (CIV).

A listed company in a high technology industry has decided to value its intellectual capital using the Calculated Intangible Value method (CIV).

Relevant data for the company:

• Pays corporate income tax at 30%

• Cost of equity is 9%, pre-tax cost of debt is 7% and the WACC is 8%

• The value spread has been calculated as $26 million

Calculate the CIV for the company.
A . 228 million
B . 289 million
C . 531 million
D . 325 million

View Answer

Answer: A