CIMA Exam CIMAPRA19-F03-1 Topic 2 Question 30 Discussion

A listed company in a high technology industry has decided to value its intellectual capitalusing 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.