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 $30$ percent discount below the $\frac{P}{E}$ ratio on

the Standard & Poor's $500$ Stock Index. Assume that the index currently

has a P$/$E ratio of $35.$ The firm can be compared to the car rental industry

as follows:

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 $0\mathrm{.}50$ point will be added to the $\frac{P}{E}$ ratio for each case

in which Richmond Rent$-$A$-$Car is superior to the industry norm, and a $0\mathrm{.}50$

point will be deducted for an inferior comparison.

On this basis, what should the initial P$/$E be for the firm?

Note: Round your answer to $1$ decimal place.

Initial $\frac{P}{E}$ ratio