Brand Soda	Generic Soda
Revenues (next year)	$2 billion	2 billion
Book value of capital (today)	$1.2 billion	1.2 billion
Cost of capital	9%	9%
After-tax operating income	$300 million	$150 million
Growth rate in operating income in perpetuity	2%	2%

a) Estimate the value of brand name

 

Answer rating: 100% (QA)

To estimate the value of a brand name particularly in the context of a soda brand like Olipop variou... View the full answer