The required rate of return in a discounted cash flow analysis, above which an investment makes sense and below which it does not. Often, this is based on the firm's cost of capital or weighted average cost of capital, plus or minus a risk premium to reflect the project's specific risk characteristics. also called hurdle rate.
Related information about required rate of return:
- Required Rate Of Return (RRR) Definition | Investopedia
The required rate of return (RRR) is used in both equity valuation and in corporate finance.Investors use the RRR to decide where to put their money.
- How To Calculate Required Rate Of Return
Feb 25, 2011 ... The required rate of return is used by investors and corporations to evaluate investments. Find out how to calculate it.
- Required Rate of Return - Financial Dictionary - The Free Dictionary
The minimum expected yield by investors require in order to select a particular investment. Required Rate of Return. In securities, the minimum acceptable rate ...
- Cost of capital - Wikipedia, the free encyclopedia
[edit] Expected return. The expected return (or required rate of return for investors ) can be calculated with the "dividend capitalization model", which is K_{cs} ...
- How to Calculate Required Rate of Return | eHow.com
How to Calculate Required Rate of Return. Required rate of return is the bare minimum return that an investor needs from an investment to feel comfortable with ...
- TSP: Before You Invest: What Is My Required Rate of Return?
However, the challenge arises in determining whether your required rate of return is realistic given your time horizon, your willingness and ability to take risk, ...
- What is Required Rate Of Return? - Investor Glossary
What is Required Rate Of Return? Find out right now with a helpful definition and links related to Required Rate Of Return.
- Required Rate of Return - wikiCFO
Apr 14, 2010 ... See Also: Valuation Methods · Arbitrage Pricing Theory · Capital Budgeting Methods · Discount Rates NPV · Internal Rate of Return Method ...