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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 CFO's suggestion? Explain why you agree or disagree with the idea.

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