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The following 2016 information is available for three companies: Crow Co. Robin Co. Sparrow Co. Face value of bonds payable $ 287,000 $ 776,000 $
The following 2016 information is available for three companies: |
Crow Co. | Robin Co. | Sparrow Co. | |||||||
Face value of bonds payable | $ | 287,000 | $ | 776,000 | $ | 506,000 | |||
Interest rate | 6 | % | 5 | % | 4 | % | |||
Income tax rate | 30 | % | 15 | % | 20 | % | |||
Required |
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.) I forgot to type part C. Can you answer?
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