RECENT ASSIGNMENT

For those doing FINC301 Corporate Finance, please submit a 2500 words essay on the following topic:

“Intangibles are a large and growing part of many company's assets. Starting with the presumption that current accounting standards do not do a good job of assessing their value, we look at whether intangible assets can be reasonably valued, and if so, the best ways of accomplishing this task. We categorize intangible assets into three groups - independent, cash generating intangibles (like trademarks and franchises) that can be valued with conventional DCF models, composite intangibles that affect the sales of many products and not just cash flows (such as brand name) that are more difficult to isolate and value and intangibles with the potential to generate cash flows in the future that are best valued using option pricing models.“
Discuss the validity of the above statement.