Publications
Publications
- March 1989 (Revised August 1994)
- HBS Case Collection
Avon Products
Abstract
Avon Products announced both a change in its business focus and a reduction of its dividend in June 1988. To offset the likely stock price effect of the dividend reduction, Avon announced at the same time an unusual exchange offer, under which it would take up to 25% of its common stock in exchange for an unusual preferred stock. The case traces the history of Avon from 1979-88. Requires students to evaluate Avon's efforts at diversification in the early 1980s, and to relate that effort to the company's dividend history. Also requires students to evaluate an unusual security. Suitable for first-year students or for a second-year capital markets course.
Keywords
Citation
Tiemann, Jonathan. "Avon Products." Harvard Business School Case 289-049, March 1989. (Revised August 1994.)