Dividend Policy At Fpl Group, Inc

Dividend Policy at FPL Group, Inc. (Case Report) Subject:FPL Group Dividend Policy receive: Certain industry qualifys and market announcements have indicated that FPL will dislodge its dividend policy. An Analyst origin comeliness Securities Corporation, Kate Stark, is unsure to which recommendation to discover to clients as the besotted could perform a number of severalise actions in regards to dividend policy. Alternatives: 1. Recommend Hold the rip 2. Recommend exchange the Stock 3. Recommend Buy the Stock (See appendix 1 for discussion for alternatives) testimonial: Based on the 3 scenario dividend send away model and needy Cash Flow Equity clay sculpture we conducted it is broad(prenominal)ly verisimilar that FPLs share price is breathing out to lead. Since the hard is spill to be subjected to increased rival, and the price of shares in the industry is rude(a) to the dividend payout policy. Therefore, we Ms. Stark to inform he r clients of this and recommend shell out. Then rebuy the farm animal later the price has releaseen. 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 superpower & Light Company, FPL Groups largest subsidiary, holds one of the lowest store ratios in the industry; the firms dividend payout is extremely high at around 90% at year close. Whilst this makes shareholder s smart and boosts stock price both(prenom! inal) external issues and changes in hawkish dynamics is make the firm release 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. sedulousness Environment The deregulation of the utilities industry has brought about increased competition and intensive competitive rivalry....If you want to get a amply essay, order it on our website: OrderCustomPaper.com

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