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You are comparing two firms- BigName Inc. and NoName Inc., both of which are mature and growing at a stable growth rate of 4%. Both
You are comparing two firms- BigName Inc. and NoName Inc., both of which are mature and growing at a stable growth rate of 4%. Both firms have revenues of $ 5 billion, book value of capital invested of $ 2.5 billion and a cost of capital of 9%. BigName Inc., though, has an after-tax operating margin of 12%, whereas NoName Inc. has an after-tax operating margin of 6%. Estimate the value of BigName Inc.'s brand
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