Hoover Roofing has existing assets that generate $6 in earnings per share. If the firm does not invest except to maintain existing assets, EPS is expected to remain constant at $6 a year. However, Hoover Roofing can start next year by investing $1 per share a year in developing a newly discovered source for electricity generation. Each investment is expected to generate a permanent 25% return. However, the source will be fully developed by the fifth year of investing in it, which means that no more new investments are possible from year 6 onwards. Investors require a 19% rate of return. What is the price-earnings (P/E) ratio?

What is the stock price if the firm would have had the same investment opportunity for 5 years, but now while maintaining a 75% dividend payout ratio during these five years?

What is the NPVGO if the firm has the investment opportunity in perpetuity maintaining a 30% retention ratio?

Please show all work, not just the excel output