Sentences with phrase «hurdle rates for»

It's possible that management might let drop the anticipated rate of return on the new project, or even their target hurdle rates for new projects in general.
However, in my conversations with Canadian firms I have picked up on another possible investment impediment — hurdle rates for new investments do not seem to have adjusted to the new reality.
When you've got PE and a hurdle rate for management back - in there's little downside risk except for your front end equity.
WACC is a vital metric because it serves as the hurdle rate for Return on Invested Capital (ROIC).
Once you're at critical mass, what's your hurdle rate for the conversions and CPA now that you're over 10,000?
If opportunity cost does not determine your hurdle rate for an investment, then what exactly does?

Not exact matches

According to a Dwyka statement the transaction has also made provisions for the payment of an additional one million rand and 24 million rand worth of Dwyka shares, if certain hurdle rates are met.
«If companies are maintaining traditional hurdle rates, they are unlikely to invest any time soon, and we will not see the kind of growth, productivity and job creation we are looking for,» Poloz said.
Personally, I've never understood people who got into this business for the excitement - get your kicks from theme parks or sports; the goal of investing should be to make guaranteed rates of return substantially in excess of your personal hurdle rate.
The inflation rate might therefore be considered the «hurdle rate» for an investment strategy — the minimum return required to keep a portfolio's purchasing power intact.
The impact of a stronger dollar is likely to remain a hurdle for earnings, but U.S. equities are also contending with high relative valuations and a likely increase in interest rates by the Federal Reserve (Fed) in the second half of this year.
Although the final tax reform policy keeps the subsidies in place, some market analysts have grown concerned that these developments — as well as regulatory hurdles for new wind projects — will prohibit or slow the rate of deployment of renewable energy by utilities in the U.S.
I have had some business leaders tell me that they have been surprised to see, for example, companies in Asia pursuing investments with implicit returns of around 3 to 4 per cent, well below most companies» hurdle rates.
But if companies are maintaining traditional hurdle rates, they are unlikely to invest any time soon, and we will not see the kind of growth, productivity and job creation we are looking for.
There are financial metrics (Return on Investment, Hurdle Rate, etc.) for new product development that emphasize immediate returns.
Generally, you calculate the hurdle rate by adding together the risk - free interest rate, a measure of inflation expectations over the life of the project and a premium to compensate for the investment's risk.
The sale of nearly $ 2 million in corporate stock by high - level Equifax executives shortly after the company learned of a major data breach has sparked public outrage that could turn into another hurdle for the credit rating agency.
As genomics expands at an exponential rate, finding the digital space to store and manage all of the data is a major hurdle for the industry.
The graduation rate is included in calculations by the federal government to determine if a high school, district or the state clears the performance hurdle set under the No Child Left Behind law, the sweeping education reform that imposes increasingly severe penalties for coming up short.
In addition to low mortgage rates and rising job growth, the down payment hurdle is starting to shrink for creditworthy borrowers, including first - time homebuyers.»
They tend to get funded by fund - of - funds who attempt to diversify nerds, and maybe a barbarian or two, who have clients looking for smooth yields in excess of their hurdle rates.
Second, a high natural rate of interest implies a large required rate of return and a more stringent hurdle for potential investments to surmount.
But a high AIR has a drawback: For your income to grow, the investments you select within the variable annuity need to generate annual returns that outpace this hurdle rate.
The higher those costs, the harder it will be for your investments to earn decent performance and thereby outpace the hurdle rate of return.
If we think the internals for a company and its securities are good enough to meet our hurdle rates — a pre-tax return of 30 % or better without meaningful investment risk; we ignore market risk completely.
PEG ratios work for core and growth investors, but the PEG ratio hurdles needed for investment are lower than most investors think, so long as the expected rate of return (discount rate) is high.
But for me, I've given myself a much higher hurdle rate, 25 % (see my blog What's wrong with my Portfolio).
You could argue that a hurdle higher that the cash rate would be better for unit holders, and you would be right.
The logic is the same for long - only funds — if market neutral funds were required to meet a hurdle above the cash rate, then long - only funds should be required to meet a hurdle above the market rate.
If you are more or less certain that you have a good understanding of where the business will be in ten years and you wait for a price that allows you to meet your hurdle rate, the odds will favor you beating the market.
A current yield of 7.5 - 8 % + will usually get me interested, but that's my initial hurdle rate — prospects for capital gain will dictate if I can perhaps ultimately earn 10 - 15 % pa.
The rationale for a predetermined investment hurdle rate is that when compared to the essentially risk - free interest rate of 10 - 30 year US treasury bonds, what return should I get from non-US treasury bonds in order to justify and compensate for the risk I'm taking?
So the more complete way of seeing whether the stock market is over-valued or not is to determine how much excess return (or minimum hurdle rate) is appropriate to compensate for the risks and costs in investing in non-risk free investments such as stocks?
An old saying «like two ships that pass in the night» has been the biggest hurdle to increased return to owner rates for shelters and successful reunions of lost dogs and their owners.
The higher bonus - category earnings rates and lower new cardholder bonus hurdle may make the card a better fit for some.
A request for rates from the Federal Energy Regulatory Commission (FERC), a normal first step for builders of new transmission, has turned into the first major hurdle for Atlantic Grid Development (AGD), led by independent transmission builder Trans - Elect and sponsored by Good Energies, Google, Inc., and Marubeni Corporation.
He says the success of any litigation practice, whether boutique or full - service, lies in the ability to «find the right equilibrium between the need for local and international expertise and sufficiently staffed teams to manage complex international litigation, while avoiding conflict hurdles and offering realistic rates».
Listed below are links to weblogs that reference High Attrition Rates Open Doors for Attorneys Returning to the Workforce, But Hurdles Remain; ABA and Hastings College of Law Launch Programs:
«High Attrition Rates Open Doors for Attorneys Returning to the Workforce, But Hurdles Remain; ABA and Hastings College of Law Launch Programs Main Success Story Update: Former Litigator Warren Brown to Launch Energy Bars With Taste»
No exam life insurance for smokers can be an even harder hurdle, if you want to pay low rates.
He knew, as we all do now, that there are serious technical hurdles to overcome to deliver a best - of - both - worlds VR experience that marries the freedom of mobile with the high frame rates and graphics quality usually reserved for computers.
Of note for traders is that the bitcoin - US dollar (BTC / USD) exchange rate has moved past the falling trend line hurdle.
If today's hurdle rate is lower than the average past property appreciation rate for a particular market, then it makes sense to buy, because future property appreciation should enable an individual, on average, to create more wealth through owning than renting.
Tackling top CIO challenges head - on: meeting hurdle rates and target returns, preparing for a rising rate environment, finding good deals in a pricey market
«NAR research shows that saving for a down payment is the biggest hurdle to homeownership for many first - time buyers, who have been entering the market at lower than normal rates.
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