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