a. Determine the annual before-tax interest cost for each company in dollars.

b. Determine the annual after-tax interest cost for each company in dollars. (Round your answers to the nearest dollar amount.)

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.)

The following information is available for three companies: Face value of bonds payable Interest rate Income tax rate Rope Co. $386,000 5% 40% Chain Co. $724,000 4% 25% Line Co. $579,000 3% 30%