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The following information is available for three companies: Face value of bonds payable Interest rate Income tax rate Rope Co. $400,000 a8% 35% Chain Co.

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The following information is available for three companies: Face value of bonds payable Interest rate Income tax rate Rope Co. $400,000 a8% 35% Chain Co. $700,000 d7% 20% Line Co. $600,000 6% 25% Required a. Determine the annual before-tax interest cost for each company in dollars. Before-Tax Interest Cost Rope Co Chain Co Line Co. b. Determine the annual after-tax interest cost for each company in dollars. 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. 2

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