What Is an Anticipatory Breach?

An anticipatory breach is defined as a repudiatory breach of contract that occurs when one party to the contract indicates, through words or conduct, that they do not intend to perform their obligations under the contract. This can occur before the contractual obligations are due to be performed. An anticipatory breach of contract gives the … Read more

What Is the Cost of Debt?

How to Calculate It.. Cost of Debt. How do you calculate cost of debt in WACC? The cost of debt is the rate of return that a company must pay to its creditors. It is calculated by taking the interest expense on the debt and divide it by the total amount of debt. The cost … Read more

Onerous Contract.

An onerous contract is a contract in which one party has to bear a disproportionately high level of risk relative to the other party, or in which the costs of performing the contract exceed the economic benefits expected to be received. Such contracts are often unprofitable, and may even result in a loss. Onerous contracts … Read more

Closed-End Lease.

A closed-end lease is a type of auto lease in which the lessee is responsible for any depreciation in value of the vehicle over the term of the lease. This type of lease is often used by businesses, as it allows them to claim a tax deduction for the depreciation of the vehicle. What is … Read more