Check my work check my work button is now enableditem 3item 3 10 points richmond rent-a-car is about to go public. the investment banking firm of tinkers, evers & chance is attempting to price the issue. the car rental industry generally trades at a 18 percent discount below the p/e ratio on the standard & poor’s 500 stock index. assume that the index currently has a p/e ratio of 20. the firm can be compared to the car rental industry as follows: richmond car rental industry growth rate in earnings per share 11% 10% consistency of performance increased earnings 4 out of 5 years increased earnings 3 out of 5 years debt to total assets 35% 40% turnover of product slightly below average average quality of management high average assume, in assessing the initial p/e ratio, the investment banker will first determine the appropriate industry p/e based on the standard & poor’s 500 index. then a 0.50 point will be added to the p/e ratio for each case in which richmond rent-a-car is superior to the industry norm, and a 0.50 point will be deducted for an inferior comparison. on this basis, what should the initial p/e be for the firm? (round your answer to 1 de

Tara incorporates her sole proprietorship, transferring it to newly formed black corporation. the assets transferred have an adjusted basis of $240,000 and a fair market value of $300,000. also transferred was $10,000 in liabilities, $1,000 of which was personal and the balance of $9,000 being business related. in return for these transfers, tara receives all of the stock in black corporation. a. black corporation has a basis of $241,000 in the property. b. black corporation has a basis of $240,000 in the property. c. tara’s basis in the black corporation stock is $241,000. d. tara’s basis in the black corporation stock is $249,000. e. none of the above.

Jamie lee is reviewing her finances one month later. she has provided the actual amounts paid below. use the cash budget table below to her identify the variances in her budget. each answer must have a value for the assignment to be complete. enter "0" for any unused categories. actual amounts income: monthly expenses: gross monthly salary $2,315 rent obligation $260 net monthly salary $1,740 utilities/electricity $130 savings allocation: utilities/water $10 regular savings $130 utilities/cable tv $155 rainy-day savings $20 food $160 entertainment: gas/maintenance $205 cake decorating class $90 credit card payment $25 movies with friends $50 car insurance $75 clothing $145 budgeted amounts assets: monthly expenses: checking account $1,850 rent obligation $225 emergency fund savings account $4,300 utilities/electricity $75 car $5,200 utilities/water $35 computer & ipad $1,100 utilities/cable tv $120 liabilities: food $115 student loan $6,600 gas/maintenance $95 credit card balance $1,000 credit card payment $45 income: car insurance $45 gross monthly salary $2,155 clothing $45 net monthly salary $1,580 entertainment: savings allocation: cake decorating class $90 regular savings $130 movies with friends $50 rainy day savings $20

Which of the following is not an example of one of the four mail advantages of prices on a free market economy