hurdle rate

listen to the pronunciation of hurdle rate
English - Turkish
engel oranı
(Ticaret) yarışma engeli oranı
English - English
The minimum return on investment or internal rate of return percentage a new product must meet or exceed as it goes through development
Indicates the rate of growth of the total assets necessary each year between now and the wind-up date if they are to be sufficient to repay the shareholders the set redemption price
A predetermined benchmark rate of return If the rate of return expected from the project or investment falls below the benchmark, investment is normally considered inadvisable
A minimum standard rate of return for acceptability as an investment
The minimum required return on a project
a rate of interest that is used as a benchmark for appraising investment projects Projects are not approved unless their Internal Rate of Return (IRR) exceeds the hurdle rate [top of page] I Initial public offering - the first occasion upon which a company offers shares for sale in a public market
The internal rate of return that a fund must achieve before its general partners or managers may receive an increased interest in the proceeds of the fund Often, if the expected rate of return on an investment is below the hurdle rate, the project is not undertaken
The required return in capital budgeting E g if the project has an expected rate of return greater than the hurdle rate, the project may be accepted
The required return in capital budgeting
The expected rate of return on a potential investment that an investment manager demands before committing his money
The expected rate of return on capital which a proposed project must meet in order to be accepted by management
- The return above which a hedge fund manager begins taking incentive fees   For example, if a fund has a hurdle rate of 10%, and the fund returns 25% for the year, the fund will only take incentive fees on the 15% return above the hurdle rate
the percentage of customers demonstrating a certain level of the behavior being profiled Looking at Hurdle Rates for certain customer profiles over time is predictive of future strength or weakness in a business For more information on using Hurdle Rate techniques, read the advanced articles at the end of the Drilling Down tutorial
The minimum desired rate of return used in a discounted-cash-flow analysis
Any criterion or test figure that a new product must meet or exceed as it goes through development
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
– The return above which a hedge fund manager begins taking incentive fees For example, if a fund has a hurdle rate of 10%, and the fund returns 25% for the year, the fund will only take incentive fees on the 15% return above the hurdle rate
The discount rate (cost of capital ) which the IRR must exceed if a project is to be accepted
A rate based on a preferred Return on Investment (ROI) that is determined by the investor to compensate for the risks related to the particular investment
The minimum rate of return that management demands from a proposed project before that project will be accepted
a minimum acceptable rate of return (set by management) for an investment (p 1111)
the minimum rate of return on an investment
The minimum investment return a fund must exceed before a performance allocation/incentive fee can be taken
(Ticaret) The minimum or required rate of return used in a discounted cash flow analysis when evaluating a proposed investment
hurdle rate

    Hyphenation

    hur·dle rate

    Turkish pronunciation

    hırdıl reyt

    Pronunciation

    /ˈhərdəl ˈrāt/ /ˈhɜrdəl ˈreɪt/

    Etymology

    [ 'h&r-d&l ] (noun.) before 12th century. Middle English hurdel, from Old English hyrdel; akin to Old High German hurt hurdle, Latin cratis wickerwork, hurdle.
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