The following information is available for three companies:

	Rope Co.			Chain Co.			Line Co.
Face value of bonds payable	$	322,000		$	788,000		$	603,000
Interest rate		5	%		4	%		3	%
Income tax rate		35	%		20	%		25	%

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. (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 Interest Cost)

Rope Co. _____ %

Chain Co. ____ %

Line Co. _____ %