Musings on Markets

FEBRUARY 8, 2025

A key tool in both endeavors is a hurdle rate a rate of return that you determine as your required return for business and investment decisions. It deepens the acquaintance because you encounter hurdle rates in almost every aspect of finance, and it ruins it, by making these hurdle rates all about equations and models.

Hurdle Rate 72

Hurdle Rate Valuation Corporate Finance Currencies 72

Musings on Markets

AUGUST 19, 2024

With more mature companies, as investment opportunities become scarcer, at least relative to available capital, the focus not surprisingly shifts to financing mix, with a lower hurdle rate being the pay off.

Corporate Finance 121

Corporate Finance Valuation Investments Finance 121

Barry Ritholtz

FEBRUARY 21, 2023

You’d hope for information ratio, but you have a bigger risk budget or standard deviation. That means a low hurdle rate. And so as we look at it, we look towards strategies, well, maybe it’s the same, a little bit higher. So you look for more excess return. Now, how do we think about active managers? So we do that.

Leadership 111

Leadership Investments Profit and Loss Technology 111

Musings on Markets

MARCH 8, 2023

The dividend principle, which is the focus of this post is built on a very simple principle, which is that if a company is unable to find investments that make returns that meet its hurdle rate thresholds, it should return cash back to the owners in that business.

Hurdle Rate 102

Hurdle Rate Corporate Finance Investments Finance 102