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Given data in Qs : i) PAT - 4000 Cr ii) Tangible Fixed Assets -3300 Cr iii) Depreciation 8

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Given data in Qs :

i) PAT - 4000 Cr

ii) Tangible Fixed Assets -3300 Cr

iii) Depreciation 8.5 %

iv) Identifiable Intangible other than brand -1200 Cr

v) Risk Premium – 5 %

vi) Return from Market is 10 %

vii) Beta of the company –Double the market

viii) Tax rate – 20 %

ix) Debenture Interest Rate is 9 %

   x) Debt : Equity is in the ratio of 3:2

   xi) Expected normal return on Tangible Assets ( Weighted Average Cost of capital + 25 % of the Cost of Debt Post Tax

xii ) Appropriate Capitalization rates for Intangibles – 22 %

Determine the possible value of Brand as per Potential Earnings Model