Patel Company residual-income-based valuation with a 3-year forecast horizon has the following assumptions: Cost of equity capital is 7% with discount factors of .935, .873, and .816 for years 1-3, respectively. Comprehensive income available for common shareholders of $8,000, $10,000, and $12,000 for years 1-3, respectively. Withdraw 40% of comprehensive income each year for dividends to common shareholders. Beginning-of-year book values of common shareholders' equity are $32,000, $36,800, and $42,800 for years 1-3, respectively. The long-run growth rate of 3% for years 4 and beyond. Which of the following statements are TRUE? There are multiple TRUE statements. To value Patel's common equity with the residual-income valuation model, first add the present value of future residual incomes to $32,000. Then multiply the sum by [1+ (.07/2)]. Patel's residual income for year 4 is $8,860. Patel's residual incomes for years 1 and 2 are $5,760 and $7,424, respectively.