Suppose that RainWater CO2, a renewable energy startup, currently has earnings of $7 per share and that Latasha anticipotes the earnings per share to grow by 4 percent per year. Using a mean industry PE ratio of 12 and the expected annual growth rate on the firm's existing earnings, the estimated stock price in three years is: $91.66 $94.49 $97.32 $102.05 Suppose RainWater Co. is expected to pay a dividend of $5 per share over the next three years, that Latasha's required rate of return is 13 . percent, and that she plans to sell the stock at the end of the three-year time period. Under these circumstances, using the adjusted dividend discount model, the value of the stock today is: $69.57 per share $77.30 per share $79.62 per share $82.71 per share Which of the following are limitations to the price-earnings model? Check all that apply. It can result in inaccurate valuations when investors fely on an industry price-earnings ratio that assigns incorrect weighting to various industry firms. It assumes that the dividend growth rate wial never be higher than the required rate of return. If can result in inaccurate valuations when investors rely on an industry price-earnings ratio that uses a collection of firms that is tco narrow, when additional competitors could have afso been used. It can result in inaccurate valuations when a stock buyback occurs unexpectedly