Valuation of the trade name using the relief from royalty method this example presents a simplified valuation of the trade name with the following key assumptions: the trade name has an indefinite life; the royalty rate based on market comparable transactions is estimated at 2% per annum; the income tax rate is assumed at 17%; the terminal growth rate is estimated at 1%; the tax useful life of the trade name is ten years; and the discount rate is estimated at 13% (mid-period discounting convention to be adopted)