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Estimate the value-to-book capital ratio for Zapata Enterprises, a trading firm in high growth, with the following characteristics: High Growth Stable Growth After-tax return on

Estimate the value-to-book capital ratio for Zapata Enterprises, a trading firm in high growth, with the following characteristics: High Growth Stable Growth After-tax return on capital 15% 12%

Expected growth rate 12% 4% Cost of capital 10% 9% If high growth is expected to last 10 years, estimate the correct value-to-book ratio for Zapata.

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