You are given the following information for Young Company. As of year, 1, the company's book value is $80,000 and its cost of capital is 15%.

	Year 1	Year 2	Year 3	Year 4	Year 5
Sales	$150,000	$163,000	$171,000	$177,000	$188,000
Operating expenses	($115,000)	($123,500)	($131,000)	($135,300)	($146,735)
Depreciation	($12,000)	($13,100)	($14,300)	($14,900)	($15,300)
Net Income	$23,000	$26,400	$25,700	$26,800	$25,965
Dividends	$6,500	$5,500	$5,800	$8,200	$6,504
Expected book value	$80,000	$96,500	$114,300	$147,300	$173,100
Expected ROCE	28.75%	26.34%	24.57%	22.89%	22.00%

Dividends for Year 6 and beyond are expected to remain at Year 5 level.

A Calculated Young's abnormal earnings (residual income) for each of the Years 1 to 5.

B Use an accounting-based valuation model to estimnate the value of Young's equity on January 1st of Year 2, Year3, Year 4, and Year 5.

C Use the PB Ratio formula to determine the PB ratio for Year 2, Year 3, and Year 4.