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critical question is to which intangible the excess is
attributable.
Next, using a relief-from-royalty methodology, respondent’s
expert opines that $287 million should be attributed to the DHL
trademark for 1990. He surveyed a wide range of businesses and
found a broad range of royalties for trademark use of .7 to 10
percent. He settled on a 1-percent royalty rate and also assumed
a 30-percent income tax rate and 6-percent growth rate. A 12.5-
percent discount rate was applied in order to reach his result.
Respondent’s other expert, after discussing several methods,
chose an income approach he called “other anticipated value
approach”, in which he quantified the value of increased benefits
in conjunction with the relief-from-royalty method (discounted
cash-flow model). He described the “other anticipated value
approach” as one that quantifies economic benefits accruing to an
asset that may not be reflected in other income approaches,
including marketing cost savings, operating synergies, lower
costs of funds, etc. This benefit is supposedly measured in the
form of incremental cash-flows that the expert believes are “not
necessarily the result of excess earnings or avoided royalties.”
He then proceeded to explain that the quantification occurs by a
cash-flow analysis reduced to a present value by means of a
discounted cash-flow technique. Finally, it was pointed out that
the “other anticipated value approach” is used in conjunction
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