Rice Business Partners Faculty Roundtable Series - Decoding CFO Strategies: The Power and Pitfalls of Elevated Hurdle Rates in Project Development

Join Rice Business Partners for a Faculty Roundtable conversation with Professor of Finance, Bruce Carlin.

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.

This event is open to all Rice Business students, alumni, Rice Business Partners members, guests, and the general public. Registrants can submit questions related to the topic for the speaker's consideration through this form; question submission and registration will close at 12:00 p.m. CT on Monday, February 26, 2024.

Click here to learn more about Rice Business Partners and how to become an individual or corporate member.