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hurdle rate
(redirected from Hurdle Rates)

   Also found in: Financial, Wikipedia 0.01 sec.
hurdle rate
n
(Economics, Accounting & Finance / Banking & Finance) Finance the rate of return that a proposed project must provide if it is to be worth considering: usually calculated as the cost of the capital involved adjusted by a risk factor


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The company added: "Bovis Homes is appraising a number of these opportunities to assess where it can invest cost effectively and generate attractive returns at or above the group's investment hurdle rates.
Only 25% of the retailers said they were working to take advantage of real estate deals that were becoming available to increase market share, while more than 80% of the 60% are undertaking a review of their portfolios are slowing down new store openings and/or remodels especially if the new hurdle rates are not being met.
Managers can analyze proposed deals against a customer's existing portfolio, giving them complete visibility into the customer's total projected profitability and corresponding risk, making it easier to identify a deal price that will meet or exceed a bank's defined earnings hurdle rates, and improve risk-adjusted return on capital.
 
 
 
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