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.
To review, Gateway's after-tax cost of debt is 8.1% and its cost of equity is 16.5%. The market. value of Gateway's debt is equal to $8.5 million and the market value of Gateway's equity is $45. million.