Unformatted text preview: may equate the marginal cost of increasing the number vaccinated with the marginal benefit from vaccinating more people to maximize your effectiveness. Thus the basic idea of comparing marginal benefits and marginal costs to maximize is the same. The costs and benefits are obviously different. 6. How much of the course’s information is transferrable / translatable to non‐profits and public programs’ organizations? I would like to think that most of the course’s information is transferrable. 7. What does “repurchase of company’s shares” signal? Repurchase signals a number of things. First as mentioned in class, it signals the fact that the management thinks that this is the best use of the firm’s cash. i.e. the firm may not have many good investment opportunities. Repurchase also signals that management may think that the stock is undervalued. If we accept the fact that management may know more about the firm’s future projects than the shareholders, then repurchase may indicate that management thinks that the shares are undervalued. Undervaluation may not necessarily mean good future projects. It could also mean better returns from existing projects. 8. (slide p14) We just learned about shareholder’s valuation? Would you please explain the bondholder’s valuati...
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- Winter '14