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HURDLE RATE Definition

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HURDLE RATE is a term used in the budgeting of capital expenditures meaning the REQUIRED RATE OF RETURN in a DISCOUNTED CASH FLOW analysis. If the expected rate of return on an investment is below the hurdle rate, the project is not undertaken. The hurdle rate should be equal to the INCREMENTAL COST OF CAPITAL.

 

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DEPTH OF MARKET is the number of shares of a security that can be bought or sold at the bid and ask prices near the inside market without causing a dramatic change in price.

BOLIVIANO is a currency in Bolivia.


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