Dividend Policy At Fpl Group, Inc

Dividend Policy at FPL Group, Inc. (Case Report) Subject:FPL Group Dividend Policy conundrum: Certain industry qualifys and market announcements have indicated that FPL will miscellanea its dividend policy. An Analyst primary comeliness Securities Corporation, Kate Stark, is unsure to which recommendation to get a line to clients as the besotted could perform a number of severalize actions in regards to dividend policy. Alternatives: 1. Recommend Hold the rip 2. Recommend carry on the Stock 3. Recommend Buy the Stock (See appendix 1 for discussion for alternatives) testimonial: Based on the 3 scenario dividend rabbet model and needy Cash Flow Equity lesson we conducted it is spacious(prenominal)ly verisimilar that FPLs share price is handout to lead. Since the hard is personnel casualty to be subjected to increased contender, 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 care. Then rebuy the melodic phrase later the price has fallen. 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 antecedent & Light Company, FPL Groups largest subsidiary, holds one of the lowest property ratios in the industry; the firms dividend payout is extremely high at around 90% at year close. Whilst this makes sh areholders ingenious and boosts stock price! both(prenominal) external issues and changes in hawkish dynamics is making 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. industriousness Environment The deregulation of the utilities industry has brought about increased competition and intensive competitive rivalry....If you want to get a full essay, order it on our website: OrderCustomPaper.com

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