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Please explain/show equations behind filled in answers 7. We discussed the fact that it is possible to estimate the value to a brand name to

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Please explain/show equations behind filled in answers

7. We discussed the fact that it is possible to estimate the value to a brand name to a company. Please consider the following data for Daimler Benz (Mercedes) and General Motors. Please compute the value of Mercedes using the simple Gordon DDM using both its current profit margin and as if it had the same profit margin of GM by filling in the empty boxes below. All in Millions of Euros except percentages Daimler Benz with GM Margins Revenues 149,467 149,467 Net Profit Margin 7.50% 4.25% Net Profits 11,210 6,353 Div. Payout Ratio 31.00% 31.00% 1969 Dividends 3,475 Cost of Capital 8.00% 8.00% Expected Growth Rate 4.00% 4.00% 86,878 44,231 Company Value Value of Mercedes Brand Name 37,647

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