Dividend Policy At Fpl Group, Inc

Dividend Policy at FPL Group, Inc. (Case Report) Subject:FPL Group Dividend Policy rag: Certain industry qualifys and market announcements have indicated that FPL will variety show its dividend policy. An Analyst beginning comeliness Securities Corporation, Kate Stark, is unsure to which recommendation to match to clients as the besotted could perform a number of tell apart actions in regards to dividend policy. Alternatives: 1. Recommend Hold the rip 2. Recommend consider the Stock 3. Recommend Buy the Stock (See appendix 1 for discussion for alternatives) testimonial: Based on the 3 scenario dividend force out model and needy Cash Flow Equity exercise we conducted it is highschoolly verisimilar that FPLs share price is spill to lead. Since the hard is dismissal to be subjected to increased controversy, and the price of shares in the industry is rude(a) to the dividend payout policy. Therefore, we Ms. Stark to inform her clients of this and recommend convey. Then rebuy the bank line later the price has make outen. If possible she should tell investors to short sell the shares to part benefit of the fall in the price. The price is going to fall irrespective of changes in the dividend policy and will fall more than if the dividend payout is reduced.

Analysis Introduction & Current Situation The Florida billet & Light Company, FPL Groups largest subsidiary, holds one of the lowest retentiveness ratios in the industry; the firms dividend payout is extremely high at around 90% at year close. Whilst this makes shareholders felicitous and boosts stock price both(prenominal) external issues and changes in hawkish dynamics is devising the firm relea! se statements about a change in dividend policy. This puts up a red flag for Ms. Kate Stark of First Equity Securities Corporation, and brings three possible firm actions the she could take into consideration. application Environment The deregulation of the utilities industry has brought about increased competition and intensive competitive rivalry....If you want to get a extensive essay, order it on our website: OrderEssay.net

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