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Dazzle Inc. is a brand name furniture company and you are trying to estimate the value of the brand name. You have collected the following

Dazzle Inc. is a brand name furniture company and you are trying to estimate the value of the brand name. You have collected the following information on Dazzle and generic furniture companies: Dazzle Generic After-tax Operating Margin 15.00% 10.00% Return on capital 18.00% 12.00% Cost of capital 8.00% 8.00% Expected growth rate 3.00% 3.00% Assuming that the difference in margins and returns on capital are entirely due to brand name, estimate the value of the brand name as a percent of overall value.

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