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Calculate the value of intangible assets

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Reference no: EM132986164

Question - Chemuka ltd. financial position on 31st December 2014

$m

Assets

Non-current assets

Property, plant and equipment (book values)?? 4,900

Current assets

Inventories ? 160

Receivables ? 3,750

Cash ? 288

Total 9,098

Equity and liabilities

Equity

Share capital and reserves 3,418

Non-current liabilities

Loan stock 2,700

Current liabilities 2,980

Total 9,098

Chemuka ltd. has 400 million shares currently trading at $ 25.00 per share

Replacement cost as per the current market value for the tangible assets is $5,800 million

The pre-tax return on the book value for Chemuka ltd's tangible assets 13% while the industry average is 16%

The cost of capital for Chemuka ltd. is 15%

The current tax rate is 30%

A similar company's tangible non-current assets have a value of $7,400 million while its intangible assets have a value of $ 1,540 million

Required - Calculate the value of intangible assets using all the 3 methods.

Reference no: EM132986164

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