The following information is available for three companies:

	Rope Co.			Chain Co.			Line Co.
Face value of bonds payable	$	211,000		$	628,000		$	517,000
Interest rate		7	%		6	%		5	%
Income tax rate		35	%		20	%		25	%

Required a. Determine the annual before-tax interest cost for each company in dollars.

	Before tax Cost
Rope Company
Chain Company
Line Company

b. Determine the annual after-tax interest cost for each company in dollars. (Round your answers to the nearest dollar amount.)

	After Tax 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.