the dynamics of American Home Products
American Home Products Corp.
This is a case about the dynamics of American Home Products, which has virtually no debt because of the anti-debt philosophy of its CEO. The case explores potential capital structure changes to the company and the reasons behind making those changes.
You should read the case as soon as possible first, and, after that, you should answer questions on the case. The paper should include the answers to those questions. Your essay should consist of a cover page name, the name of the case, etc., and then the report should have the answers, such as questions.
How might AHP implement a more aggressive capital structure policy? What are the alternative methods for leveraging up? Given AHP’s unique corporate culture, what arguments would you use to persuade Mr. Laporte or his successor to adopt your recommendation?