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 Technology?s 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 Colin?s value at the beginning of Year 1.
2. Determine Collin?s PB ratio using the results above. Colin?s actual market-based PB ratio is 1.95. What do you conclude from this PB comparison?
3. Determine Colin?s PE ratio using the results above. Colin?s actual market-based PE ratio is 10. What do you conclude from this PE comparison?
4. If we expect Colin?s 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 Colin?s value at the beginning of year 1.

Please provide clear and detailed answers