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#207 – What Are the Disadvantages of Hurdle Rate?

Strategic Treasurer

What Are the Disadvantages of Hurdle Rate? Investments require a certain minimum rate of return to make them worthwhile. On this podcast, Craig Jeffery and Paul Galloway continue their discussion on investment returns with a specific look into Hurdle Rate. Host: Craig Jeffery, Strategic Treasurer.

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Musings on Markets: Data Update 5 for 2022: The Bottom Line!

CFO News Room

Income from financial holdings (including cash balances, investments in financial securities and minority holdings in other businesses) are added back, and interest expenses on debt are subtracted out to get to taxable income.

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Data Update 5 for 2022: The Bottom Line!

Musings on Markets

Income from financial holdings (including cash balances, investments in financial securities and minority holdings in other businesses) are added back, and interest expenses on debt are subtracted out to get to taxable income. I will use this data to draw three broad conclusions: Low Hurdle Rate ?

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In Search of Safe Havens: The Trust Deficit and Risk-free Investments!

Musings on Markets

The first is that there is no risk that the issuer of the security will default on their contractual commitments. As the risk-free rate rises, expected returns on equities will be pushed up, and holding all else constant, stock prices will go down., and the reverse will occur, when risk-free rates drop.

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Data Update 3 for 2021: Currencies, Commodities, Collectibles and Cryptos

Musings on Markets

I know that you can create securities denominated in bitcoin that have contractual or residual cash flows, but if you do so, it is not bitcoin that is the asset, but the underlying contractual claim. Data Update 4 for 2021: The Hurdle Rate Question. Here is my personal take: Bitcoin is not an asset.

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Data Update 6 for 2023: A Wake up call for the Indebted?

Musings on Markets

Furthermore, do they optimize they debt ratios to deliver the lowest hurdle rates. Do companies optimize financing mix? Do companies consider the trade off between tax benefits and bankruptcy costs when borrowing money?

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Transcript: Edward Chancellor

Barry Ritholtz

In a way, it’s more explicit in a capitalist economy because you’re paying a certain rate of interest on your loan, or you have a certain required hurdle rate on your investment, or you’re applying a certain discount in the valuation of an asset. I used to think the dot-com bubble was amazing. CHANCELLOR: No.