Cost of Capital Explained: The Hurdle Rate Every Investor & Business Owner Must Know

Описание: What return does an investment actually need to be worth doing?

In this video, we explain the cost of capital—the minimum return (or hurdle rate) required to justify investing in a business or real estate project.

Building on the idea of opportunity cost, we walk through:
-Why businesses compete in the market for capital
-The difference between debt vs. equity financing
-What capital structure (and the real estate “capital stack”) really mean
-How investors think about weighted average cost of capital (WACC)
-Why value is only created when returns exceed the hurdle rate

Whether you're a business owner, investor, or real estate professional, understanding cost of capital is essential for making smart strategic and financial decisions.

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