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Need help on B & C. A is correct The following information is available for three companies: Face value of bonds payable Interest rate Income
Need help on B & C. A is correct
The following information is available for three companies: Face value of bonds payable Interest rate Income tax rate Rope Co. $266,000 9% 35% Chain Co. $608,000 8% 20% Line Co. $628,000 7% 25% Required a. Determine the annual before-tax interest cost for each company in dollars. Rope Co. Chain Co. Before-Tax Interest Cost $ 23.940 $ 48,640 $ 43,960 Line Co. 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 Step by Step Solution
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