For car makers, the system's least attractive aspect was its price relative to camshafts.
But its high price relative to profits requires it to keep growing fast.
Jeremy Nicholson, director of the Energy Intensive Users Group, said the absolute price of energy was less of an issue than the price relative to that of rivals.
"We hope management and the board will continue to act responsibly in addressing Viacom's depressed stock price relative to its much higher asset value".
So the financial rationale for entry-level cars mostly amounts to what you save on the purchase price, relative to the next car up the ladder.
In a post at Nieman Journalism Lab, the news analyst Ken Doctor noted that the price, relative to earnings, is "about 10 times what an average U.S. daily, large or small, would sell for today".
Because companies using the Bermuda arrangement earn bigger after-tax profits, they enjoy a higher stock price relative to their profits and they build financial muscle much more quickly.
Once they have found undervalued candidates, they look for signs of momentum, like a pickup in earnings growth, earnings that are above analysts' estimates, an upward revision in earnings estimates or a strong stock price relative to the market.
He cited an example in the Chicago area where a suburban home worth the same as a close-in home in 2006 had declined in price, relative to the city home, by $66,000 in 12 months.
REUTERS Analysts Still Refuse Buy Rating for Berkshire | Warren E. Buffet's holding company, Berkshire Hathaway, is struggling to get a buy recommendation from equity analysts, despite trading at its lowest price relative to book value for more than two years.
Lucas argued for a "signal processing" approach, in which individuals can't immediately distinguish between changes in their wage or price relative to others — changes to which they should respond by altering supply — and overall changes in the price level.
