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14 The following information is available for three companies: Rope Co. Chain Co. Face value of bonds payable $314,000 $702,000 Interest rate 8% 7% Income
14 The following information is available for three companies: Rope Co. Chain Co. Face value of bonds payable $314,000 $702,000 Interest rate 8% 7% Income tax rate 35% 20% Line Co. $559,000 6% 25% 0.66 points Required a. Determine the annual before-tax interest cost for each company in dollars. Before-Tax Interest Cost eBook Rope Co. Chain Co. Line Co. References b. Determine the annual after-tax interest cost for each company in dollars. (Round your answers to the nearest dollar amount.) After-Tax Interest Cost Rope Co. Chain Co. Line Co. c. Determine the annual after-tax interest cost for each company as a percentage of the face value of the bonds. (Round your answers to 1 decimal place.) After-Tax Interest Cost % Rope Co. Chain Co. % Line Co. %
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