- The rate of interest in a capital budgeting study that a proposed project must exceed before it can be regarded worthy of consideration. The hurdle rate is often based on the cost of capital or the weighted average cost of capital, adjusted by a factor to represent the risk characteristics of the projects under consideration.
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hurdle rate — noun (finance) The minimum rate at which annual assets must grow before the achievement of specified results • • • Main Entry: ↑hurdle … Useful english dictionary
Hurdle rate — The hurdle rate is the minimum rate of return that must be met for a company to undertake a particular project. The hurdle rate is usually determined by evaluating existing opportunities in operations expansion, rate of return for investments,… … Wikipedia
Hurdle Rate — The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, the riskier the project, the higher the hurdle rate. In the hedge fund world, hurdle rate refers to the rate of return that… … Investment dictionary
hurdle rate — The required return in capital budgeting. For example, if a project has an expected rate of return higher than the hurdle rate, the project may be accepted. Bloomberg Financial Dictionary … Financial and business terms
hurdle rate — The rate of interest in a capital budgeting study that a proposed project must exceed before it can be regarded as worthy of consideration. The hurdle rate is often based on the cost of capital or the weighted average cost of capital, adjusted by … Accounting dictionary
hurdle rate — Fin a rate of return which a capital investment proposal must achieve if it is to be accepted. Set by reference to the cost of capital, the hurdle rate may be increased above the basic cost of capital to allow for different levels of risk … The ultimate business dictionary
hurdle rate — / hɜ:d(ə)l reɪt/ noun 1. the rate of growth in a portfolio required to repay the final fixed redemption price of zero dividend preference shares 2. a minimum rate of return needed by a bank to fund a loan, the rate below which a loan is not… … Dictionary of banking and finance
hurdle rate — A *rate of return used as a threshold for accepting or rejecting proposed investments. It represents a required rate of return. See *cost of capital … Auditor's dictionary
Hurdle rate — The required return in capital budgeting. The New York Times Financial Glossary … Financial and business terms
Минимально допустимая рентабельность (HURDLE RATE, CUT-OFF RATE) — Минимально допустимая норма прибыли, которую компании предполагают получить от будущего проекта или инвестиций без учета нефинансовых показателей. Минимально допустимая рентабельность обычно превышает стоимость капитала компании. Называется также … Словарь терминов по управленческому учету