Many drug firms were relatively unleveraged, but none matched AHP’s conservative capital structure. Because of AHP’s diversified operations, it was difficult to find a truly comparable firm for comparative analysis. However, Warner-Lambert Company was about the same size as AHP and competed in roughly similar lines of business (see Exhibit 2 for a comparison of AHP and Warner-Lambert). Warner-Lambert had a debt ratio of 32%, and its bond rating was on the borderline between AAA and AA in 1980.