be $0 per year after Year 7. Use the accounting-based equity valuation model to estimate

After careful financial statement analysis, we obtain these predictions for Colin Technology: Colin Technology”s cost of equity capital is estimated at 13 percent. Required: a. 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. b. Determine Colin”s PB ratio using the results in (a ). Colin”s actual market-based PB ratio is 1.95. What do you conclude from this PB comparison? c. Determine Colin”s PE ratio using the results in (a ). Colin”s actual market-based PE ratio is 10. What do you conclude from this PE comparison? d. 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 valuation model to estimate Colin”s value at the beginning of Year 1.