Avon Products has announced a change in business focus and reduce its dividend in June 1988. To compensate for the possible impact of the share price of the dividend reduction, Avon announced at the same time unusual offer of exchange, under which it will take up to 25% of its common stock in exchange for preferred shares of the ordinary. The case traces the history of Avon 1979-88.
avon products case solution
Requires students to appreciate the efforts of the Avon to diversify in the early 1980's, and say that the efforts of the company's dividend history. Also requires students to assess the unusual security. Suitable for first-year students or for the second year in capital markets. "Hide
by Jonathan Tiemann Source: Harvard Business School 9 pages. Publication Date: March 14, 1989. Prod. #: 289049-PDF-ENG
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