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Test your understanding 12 (Objective test question) Company XX is using the Calculated Intangible Value (CIV) company valuation method to value its intangible assets. Key data: XX has a WACC of 12%, cost of debt of 7% and cost of equity of 14% Net profit before tax for XX is $50 million XX's tangible assets are $67 million Average industry return on tangible assets is 16% Corporate income tax is 20% Complete the following CIV calculation: CIV = [$50 million - ([UNKNOWN FIGURE 1] x $67 million) ] x [UNKNOWN FIGURE 2]/0.12 [UNKNOWN FIGURE 1] is A 0.16 B 0.12 C 0.07 D 0.14 [UNKNOWN FIGURE 2] is E 0.80 F 0.20 G 1.20 H 1.80