Frenza Bond Carrying Value:

January $1,$ Year $1$: $$105,600$

June $30,$ Year $1$: $$108,000$

December $31,$ Year $1$: $$110,400$

June $30,$ Year $2$: $$112,800$

December $31,$ Year $2$: $$115,200$

June $30,$ Year $3$: $$117,600$

December $31,$ Year $3$: $$120,000$

Cash & Inventory for Competing Companies:

Frenza:

Cash: $$66,000$

Inventory: $$36,000$

Lika:

Cash: $$38,400$

Inventory: $$50,400$

Nelo:

Cash: $$21,600$

Inventory: $$84,000$

Market Rate for Company Bonds:

Frenza: $9\%$

Lika: $7\%$

Nelo: $4\%$

Net Income:

Frenza: $$120,000$

Lika: $$228,000$

Nelo: $$102,000$

Total Equity:

Frenza: $$4,800,000$

Lika: $$6,360,000$

Nelo: $$3,300,000$

The founder of Frenza asks for assistance in accounting and analyzing her corporation's bonds, which have an annual contract rate of $8\%.$