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Fundamental
Hurdle Rate
Minimum acceptable return for a project/investment
Definition
Hurdle rate is the minimum required rate of return for an investment to be worthwhile. It typically equals the cost of capital (WACC) plus a risk premium. Projects/investments must exceed the hurdle rate to create value.
Related Topics
#required return
#capital budgeting
#risk premium
#investment criteria
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Category: Fundamental
Fundamental analysis examines a company's financial health, management quality, and market position to determine intrinsic value.
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