The encroachment, breach, or violation of a right, law, regulation, or contract. The term is most frequently used in reference to the invasion of rights secured by Copyright, patent, or trademark.
Multiply the after-tax interest rate of your debt by the principal amount of your debt. The result will be the true annual dollar cost of your debt. For example, if your loan is for $100,000, your interest rate is 5 percent and your after-tax interest rate is 4 percent, $100,000 times 4 percent equals $4,000.
Firm U uses no debt financing, and its cost of equity is r sU = 14%. Firm L has $1 million of debt outstanding at a cost of r d = 8%. There are no taxes. Assume that the MM assumptions hold, and then: 1. Find v, s, r s , and WACC for firms U and L. Answer: First, we find Vu and V L : V U = sU r EBIT = 14 ....