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The following information is available for three companies: Face value of bonds payable Interest rate Income tax rate Rope Co. $323,000 Chain Co. $615,000

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The following information is available for three companies: Face value of bonds payable Interest rate Income tax rate Rope Co. $323,000 Chain Co. $615,000 Line Co. $699,000 .8% 35% 7% 6% 20% 25% Required a. Determine the annual before-tax interest cost for each company in dollars. Rope Co. Chain Co. Line Co Before-Tax Interest Cost b. Determine the annual after-tax interest cost for each company in dollars. (Round your answers to the nearest dollar amount.) Rope Co. Chain Co. Line Co After Tax Interest Cost 4 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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