An organization's hurdle rate should be at least equal to the organization's cost of capital.

Question

Quizplus · Accepted Answer

The hurdle rate is the minimum rate of return that an organization requires to undertake a project or investment. It is important that the hurdle rate should be at least equal to the organization's cost of capital, which represents the minimum rate of return that investors expect to earn from the organization. This ensures that the project or investment generates sufficient returns to cover the cost of capital and create value for the organization. Therefore, the statement is true.

An Organization's Hurdle Rate Should Be at Least Equal to the Organization's