After careful financial statement analysis, we obtain these predictions for Colin Technology: Year Net Income Beginning Book Value 1 $1,034 $5,308 2 1,130 5,292 3 1,218 5,834 4 1,256 6,338 5 1,278 6,728 6 1,404 7,266 7 1,546 7,856 Colin Technologys cost of equity capital is estimated at 13 percent. Required: 1.Abnormal earnings are expected to be $0 per year after Year 7. Use the accounting-based equity valuation model to estimate Colins value at the beginning of Year 1. 2.Determine Collins PB ratio using the results above. Colins actual market-based PB ratio is 1.95. What do you conclude from this PB comparison? 3.Determine Colins PE ratio using the results above. Colins actual market-based PE ratio is 10. What do you conclude from this PE comparison? 4.If we expect Colins sales and profit margin to remain unchanged after year 7 with a stable book value of $8,506, use the accounting-based equity model to estimate Colins value at the beginning of year 1