Q$1.$ 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?

Q$2.$ What capital structure would you recommend for AHP? Why?

a$)$ What is the effect of the repurchase $($Exhibit $3)?$

b$)$ Why bother changing capital structure?

$4.$ How would you convince AHP to change its financial policies?

a$)$ How would capital markets interpret a change?

b$)$ Could AHP be forced to take on more debt?