Zoso is a rental car company that is trying to determine whether to add 25 cars to its fleet. the company fully depreciates all its rental cars over four years using the straight-line method. the new cars are expected to generate $190,000 per year in earnings before taxes and depreciation for four years. the company is entirely financed by equity and has a 35 percent tax rate. the required return on the company's unlevered equity is 14 percent, and the new fleet will not change the risk of the company. the risk-free rate is 8 percent.

Herman is covered by a cafeteria plan by his employer. his adjusted gross income (agi) is $100,000. he paid unreimbursed medical premiums in the amount of $10,500 and he itemizes deductions. what amount will herman be able to deduct for his medical insurance premium expenses?

Cosmetic profits. sally is the executive vice president of big name cosmetics company. through important and material, nonpublic information, she learns that the company is soon going to purchase a smaller chain of stores. it is expected that stock in big name cosmetics will rise dramatically at that point. sally immediately buys a number of shares of her company's stock. she also tells her friend alice about the expected purchase of stores. alice wanted to purchase stock in the company but lacked the funds with which to do so. although she did not have the funds in bank a, alice decided to draw a check on bank a and deposit the check in bank b and then proceed to write a check on bank b to cover the purchase of the stock. she hoped that she would have sufficient funds to deposit before the check was presented for payment. of which of the following offenses, if any, is alice guilty of by buying stock?

Use this image to answer the following question. when the economy is operating at point b, the us congress is most likely to follow