Question
You are a CEO of RFS Motors, and you have private information about the firm and the automotive industry. You know that RFS Motors is
You are a CEO of RFS Motors, and you have private information about the firm and the automotive industry. You know that RFS Motors is overvalued and that three largest automobile manufacturers are still undervalued. A CFO of RFS Motors suggests you initiate share repurchase programs because JFE Motors, the largest firm in the automotive industry, uses the share repurchase as a way of signaling. Do you agree with the CFOs suggestion? Explain why you agree or disagree with the idea. (Your answer must be no more than 100 words. Your mark will be penalized for exceeding 100 words limit.)
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