Worksheet \#4 American Home Products Common dividend payout ratio =60% Interest on debt =14% Original...

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Finance

image Worksheet \#4 American Home Products Common dividend payout ratio =60% Interest on debt =14% Original number of shares outstanding =155.5 million shares Price for share repurchases =$30 Current debt =13.9 Q1. How would you characterize AHP's operating strategy a) What are the implications for AHP's basic business risk? b) What are the implications for AHP's financial strategy? Q2. What capital structure would you recommend for AHP? Why

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