Re: AHP Case

Gents:
Here it is. Please insert directly any proposed edits using
strike-out-underline. Need them no later than 10 AM tomorrow in order to
have incorporated and ready to go for class tomorrow. Dylan, just go ahead
and put your operating cash flow nos. in (and any other changes you have) and
send on back. All: recall that we are limited to 4 pages of text.

Best,
Jeff

Jeff Dasovich
Sent by: Jeff Dasovich
02/25/2001 11:57 AM

To: Dylan Windham <dwindham@uclink4.berkeley.edu<
cc: guinney@haas.berkeley.edu, JcjCal02@aol.com, jdasovic@enron.com,
Jeff.Dasovich@enron.com, jjackson@haas.berkeley.edu
Subject: Re: AHP Case

Greetings:
I'm going to finish this up in the next few hours and send out. Dylan, go
ahead and calculate using operating cash rather than income and send along
and I'll incorporate. I'll try to work Jimmy's stuff in a bit, too.

Best,
Jeff

Dylan Windham <dwindham@uclink4.berkeley.edu<
02/22/2001 11:48 PM

To: guinney@haas.berkeley.edu, JcjCal02@aol.com, jdasovic@enron.com,
Jeff.Dasovich@enron.com, jjackson@haas.berkeley.edu
cc:
Subject: AHP Case

Jeff:

I just got done ready your memo. I really liked what you have done. I did
not want to make any direct changes, but rather just pose a few questions
for discussion.

First, when I calculated how long it would take to purchase the shares
without debt I did use the net income number. It might be better to change
them to the operating cash flow number. If you guys would like, I can
recalculate them.

I agree that having higher amounts of debt will fend off take overs.

Are we planing to calculate the amount the tax shield will increase the
value of the company. If we assume that the debt will be held in
perpetuity, we can directly compute the amount. Let me know and I can run
the numbers.

Also, Jimmy when you do the color graphs you want to do. Try some MM pie
charts (just kidding)

Good job,

Let me know what I can do to help.

Dylan