hurdle rate

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hurdle rate

n
(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
References in periodicals archive ?
More Diverse Array of Fee Structures are being offered to investors than ever before, with 76% of investors taking advantage of options such as early stage discounts from new launches, reduced fees for longer lock-ups, sliding fee schedules based on fund AuM, large ticket discounts and hurdle rates or other types of customized terms.
The transaction is expected to generate returns exceeding SES's hurdle rates for infrastructure investments.
Our redevelopment of Wetherill Park forms part of our group strategy to grow our recurring income stream and provide risk-adjusted returns above our target hurdle rates.
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.
Despite docking up sales of almost 12m [pounds sterling] since its launch last July, the yoghurt and yoghurt drink brand did not meet the hurdle rates set by retailers.
The results of the latest hurdle rate analysis suggest that un-leveraged regional hurdle rates for core office are 7-8% in the US, Canada and Northern Europe while a slight premium is required in Asia and Southern/Central Europe," he said.
In response to the government's invitation, TEI submitted three examples of the use of other discount rates such as risk-adjusted hurdle rates and risk-adjusted cash flows.
This highlights the necessity for future empirical studies on capital budgeting to distinguish between alternative forms of hurdle rates.
In particular, we empirically examined the escalation of commitment tendencies in managers receiving organization-set, self-set, and no hurdle rates.
The two-period example in the previous section may seem contrived, but McDonald (1999) shows that for a given cost of capital, a wide range of hurdle rates will result in decisions that are close to the optimal decision based on dynamic programming.