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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

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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 information on Dazzle and generic furniture companies: After-tax Operating Margin Return on capital Cost of capital Expected growth rate Dazzle 15.00% 18.00% 8.00% 3.00% Generic 10.00% 12.00% 8.00% 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. A. 20.00% B. 33.33% C. 40.00% D. 66.67% E. 100.00%

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