A listed company in a high technology industry has decided to value its intellectual capital using 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.