3. Stock valuation methods: Adjusted dividend discount model Suppose that Airpower Co. a renewable energy startup, currently has earnings of 56 per share and that Eleanor ankiclpates the earnings per share to grow by 2 percent per year. Using a mean industry PL ratia of 13 and the expected annuat growth rate on the firm's existing earnings, the natimated stock price in three years is: Soppose Airpower co. is expected to pay a dividend of s4 per share ever the next three years, that Eleanor's required rate of ratarn is is 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: 4.57.20 per share 563.55 per share $65.46 per share 568.00 per share Which of the following are limitations to the price-earnings model? Check aw that apply. It can result in inaccurate valuations when a stock buyback occurs unexpectedly. It can result in inaccurate valuations when investors rely on an industry price-earnings ratio that ules a collection of firms that is foo broad, when a smaller, more representative collection of fims could have been used. It assumes that the dividend growth rate wili never be higher than the required rate of return. It can result in inaccurate valuations when investors rely on an industry price-earmings ratio that uses a collection of firms that is too narrow, when additional competitors could have also been used