In the mid-2000s, Scotts decided to pursue recapitalization of their company. Depending on the edition of the text you have, you may have read about the situation when the author discusses the recapitalization scenario. If you do not have the case study in your text, you can Google Scotts Recapitalization and read about it.
Either discuss with the class the current ratio analysis for the company as compared to their ratios at that time, conflict between executive bonuses and shareholders, or read further in this chapter and discuss the "interest tax shield" and the benefits of debt.