3. Consider Pacific Energy Company and U.S. Bluechips, Inc., both of which reported earn- ings of $800,000 last year and have 500,000 shares of common stock outstanding. These earnings will continue in perpetuity in the absence of new investment. Assume both firms have the same required rate of return (discount rate) of 15% a year. Pacific Energy has a new project that will generate cash flows of $100,000 at the end of each year in perpetuity. Calculate the P/E ratio of the company, where E is last year's earnings. (b) U.S. Bluechips has a new project that will increase earnings by $200,000 in the coming year. The increased earnings of $200,000 will then grow at 10% a year in perpetuity. Calculate the P/E ratio of the firm, where E is last year's earnings