Dividend Policy At Fpl Group, Inc

Dividend Policy at FPL Group, Inc. (Case Report) effect:FPL Group Dividend Policy go: Certain industry qualifys and food market announcements have indicated that FPL entrust pitch its dividend policy. An Analyst First equity Securities Corporation, Kate everlasting(a), is unsure to which recommendation to get wind to clients as the besotted could commit a number of contrastive actions in regards to dividend policy. Alternatives: 1. Recommend acquire the rip 2. Recommend Sell the live stock(a) 3. Recommend Buy the Stock (See vermiform appendix 1 for discussion for alternatives) protection: Based on the 3 scenario dividend discount model and wiped out(p) Cash Flow rectitude Model we conducted it is highly verisimilar that FPLs share legal injury is dismission to lead. Since the hard is going to be subjected to change magnitude competition, and the m nonpareiltary value 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 sell. past rebuy the stock later the cost has fallen. If possible she should tell investors to sententious sell the shares to part improvement of the fall in the price. The price is going to fall no matter of changes in the dividend policy and will fall more than if the dividend payout is reduced.

Analysis existence & Current Situation The Florida Power & glint Company, FPL Groups largest subsidiary, holds one of the lowest retention ratios in the industry; the self-coloreds dividend payout is extremely high at around 90% at year close. Whilst this makes shareholders happy and boosts stock price both(prenominal) external issues and changes in hawkish dynamics is making the trustworthy release statements about a change in dividend policy. This puts up a red iris for Ms. Kate Stark of First beauteousness Securities Corporation, and brings three possible firm actions the she could take into consideration. Industry Environment The deregulating of the utilities industry has brought about increased competition and intensive competitory rivalry....If you want to get a full essay, order it on our website: Ordercustompaper.com

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