Join Rice Business Partners for a Faculty Roundtable conversation with Professor of Finance, Bruce Carlin, on Wednesday, February 28, 11:30 am - 1:00 pm CT. 

Prof. Bruce Carlin's research reveals that nearly 80% of CFOs utilize a hurdle rate that is double their true cost of capital when evaluating investment opportunities. Examining the implications of this phenomenon within the context of delegated bargaining during project development, he will demonstrate that heightened hurdle rates confer a bargaining advantage, consequently raising firm value. His argument rationalizes why this practice persists in corporate America.