- Join over 1.2 million students every month
- Accelerate your learning by 29%
- Unlimited access from just £6.99 per month
American Home Products Capital Structure Case Study.
The first 200 words of this essay...
From: Team Delta
American Home Products Capital Structure Case Study
American Home Products is a corporation involved in the production and marketing of over 1,500 consumer goods allocated among four distinct lines of business comprised of prescription drugs, packaged drugs, food products, housewares and household products. While the corporation does not invest heavily into the research and development of new lines of business, its success is a result of its ability to aggressively market the products it manufactures, especially the company's line of prescriptin drugs.
American Home Products is a company with virtually no debt and an impressive amount of cash on its balance sheet. Under its current leadership, CEO William F. Laporte maintains an extremely conservative capital structure. During his 17 year tenure, Laporte's brand of centralized micro-management created a company with a clean, low-debt balance sheet; cash reserves equal to 40% of its net worth (Total Assets less Total Liabilities); sales in excess of $4 billion with growth ranging between 10%-15% annually; and remarkable gains in market share while reducing or maintaining a low level of expenses. All this combined with dividend growth of 222% between 1972 - 1981, contributed
Found what you're looking for?
- Start learning 29% faster today
- Over 150,000 essays available
- Just £6.99 a month
Not the one? We have 100's more
Finance (view all)
- This report will detail how the Ford VEP plan added value by...
- The NPV rule is the best investment appraisal method." ...
- Analysis of fINANCIAL SITUATION OF TESCO PLC. This project w...
- Case report for Yeat and Valves. Inc
- Gap - Analysis - McDonalds
""John Plowright. Teacher. Repton School. Derbyshire.
""Jackie Shanahan. Maths. A Level Student.