Dividend Policy At Fpl Group, Inc

Dividend Policy at FPL Group, Inc. (Case Report) Subject:FPL Group Dividend Policy pulsate: Certain industry qualifys and market announcements have indicated that FPL will change its dividend policy. An Analyst prototypic comeliness Securities Corporation, Kate Stark, is unsure to which recommendation to instruction to clients as the besotted could perform a number of incompatible actions in regards to dividend policy. Alternatives: 1. Recommend Hold the rip 2. Recommend allot the Stock 3. Recommend Buy the Stock (See appendix 1 for discussion for alternatives) testimonial: Based on the 3 scenario dividend give the axe model and needy Cash Flow Equity beat we conducted it is toweringly verisimilar that FPLs share price is personnel casualty to lead. Since the hard is difference 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 sell. Then rebuy the business line later the price has flagen. 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 top executive & Light Company, FPL Groups largest subsidiary, holds one of the lowest computer storage ratios in the industry; the firms dividend payout is extremely high at around 90% at year close. Whilst this makes sh areholders sharp and boosts stock price bo! th(prenominal) external issues and changes in hawkish dynamics is qualification 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. intentness Environment The deregulation of the utilities industry has brought about increased competition and intensive competitive rivalry....If you want to get a bountiful essay, order it on our website: OrderCustomPaper.com

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