Excess Earnings Method -- No Sense

Hello my idea is that Excess Earnings Method makes no sense because the value of intangibles depend by the capital structure.

Ex 1

D = 0

Excess earnings1 = Ebit (1-t) - r1 * (Fixed Asset) - r2 * (Working Capital)

Ex 2

D > 0

Excess earnings2 = (Ebit - D * rd) (1-t) - r1 * (Fixed Asset) - r2 * (Working Capital)

Now … Excess earnings2 < Excess earnings1 … is the value of intangibles lower?

The tax shield should add value to the company!