Hurdle rate and weighted average cost of capital


Question 1: What is the relationship between hurdle rate and Weighted Average Cost of Capital (WACC)?

Question 2: Which type of risk is more difficult to minimize: systematic or unsystematic? Why?

Question 3: Given the choice, being a small business owner, having experienced success in the local market, and wishing to expand company operations on a greater scale, what type of external financing would you use first and why?

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Finance Basics: Hurdle rate and weighted average cost of capital
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