Why is the cost of capital sometimes referred to as a hurdle rate?

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Why is the cost of capital sometimes referred to as a “hurdle rate”?

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Fundamentals Of Financial Management

ISBN: 9780357517574

16th Edition

Authors: Eugene F. Brigham, Joel F. Houston

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Question Posted: Feb 26, 2024 10:01 AM

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Why is the cost of capital sometimes called the "hurdle rate"?
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Why is the cost of capital sometimes referred to as a hurdle rate?

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The cost of capital is often referred to as a hurdle rate because it acts as a benchmark or minimum ...View the full answer

Fundamentals Of Financial Management

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