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CIMAPRA19-F03-1 Exam - Topic 2 Question 30 Discussion

A listed company in a high technology industry has decided to value its intellectual capitalusing the Calculated Intangible Value method (CIV).Relevant data for the company:* Pays corporate income tax at 30%* Cost of equity is 9%, pre-tax cost of debt is 7% and the WACC is 8%* The value spread has been calculated as $26 millionCalculate the CIV for the company.
A) 228 million
B) 289 million
C) 531 million
D) 325 million

CIMAPRA19-F03-1 Exam - Topic 2 Question 30 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam
Question #: 30
Topic #: 2
[All CIMAPRA19-F03-1 Questions]

A listed company in a high technology industry has decided to value its intellectual capitalusing the Calculated Intangible Value method (CIV).

Relevant data for the company:

* Pays corporate income tax at 30%

* Cost of equity is 9%, pre-tax cost of debt is 7% and the WACC is 8%

* The value spread has been calculated as $26 million

Calculate the CIV for the company.

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Suggested Answer: A

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Dean
10 months ago
325 million? I don’t know, that seems too high.
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Noelia
10 months ago
Definitely going with C, 531 million. Looks right to me!
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Pamella
11 months ago
Wait, how did they get to that number? Seems off.
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Viva
11 months ago
I'm pretty sure the answer is B, 289 million!
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Marya
11 months ago
CIV is calculated using the value spread and WACC.
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Fannie
11 months ago
I'm a bit unsure about this one. Azure has so many different security and monitoring tools, it's hard to keep track of them all. I'll have to think this through carefully before selecting an answer.
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Domonique
11 months ago
Okay, I've got this. The key here is that the seller is reimbursed for all allowable costs and also gets a fixed fee, which points to a Cost Plus Fixed Fee contract. I'm confident that's the right answer.
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Viola
11 months ago
Hmm, this seems straightforward. I think the answer is False since the question states that performance testing on SaaS is almost always done with a white box approach, which typically involves automated testing software.
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Deane
11 months ago
I remember encountering a similar question in our practice quizzes... I think the answer was diagnostic logging too.
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Sharan
11 months ago
I'm a bit confused by the wording of some of these choices. I'll need to read through them carefully and try to visualize what each one would mean in practice.
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Cammy
11 months ago
I'm pretty sure the answer is B. In-Service Software Upgrade on Cisco Nexus 9000 Series Switches should support nondisruptive upgrades via nonstop forwarding.
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