The following information relates to questions 4-5: You have been asked to value Pacific Corporation, Inc., using an excess earnings method, given the following information: Working capital balance = $2,000,000 Fair value of fixed assets = $5,500,000 Book value of fixed assets = $4,000,000 Normalized earnings of firm = $1,000,000 Required return on working capital = 5.0 percent Required return on fixed assets = 8.0 percent Required return on intangible assets = 15.0 percent Weighted average cost of capital = 10.0 percent Long-term growth rate of residual income = 5.0 percent Question: Based on the information above, what is the value of Pacifics intangible assets?

Select one:

a. $4,630,000

b. $4,730,000

c. $4,830,000

d. $4,930,000

What is the market value of invested capital?

Select one:

a. $12,330,000.

b. $12,430,000.

c. $12,530,000.

d. $12,630,000.