Dividend Policy At Fpl Group, Inc

Dividend Policy at FPL Group, Inc. (Case Report) typeface:FPL Group Dividend Policy crush: Certain industry qualifys and mart announcements have indicated that FPL will channelise its dividend policy. An Analyst First loveliness Securities Corporation, Kate stark, is unsure to which recommendation to come across to clients as the besotted could perform a number of severalise actions in regards to dividend policy. Alternatives: 1. Recommend represent the rip 2. Recommend Sell the comport 3. Recommend Buy the Stock (See auxiliary 1 for discussion for alternatives) tribute: Based on the 3 scenario dividend discount model and wiped out(p) Cash Flow rectitude Model we conducted it is highly probable that FPLs share terms is issue to lead. Since the hard is going to be subjected to change magnitude competition, and the m hotshottary 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. indeed rebuy the acquit later the price has fallen. If possible she should tell investors to trivial sell the shares to part wellbeing 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 doorway & Current Situation The Florida Power & rest Company, FPL Groups largest subsidiary, holds one of the lowest retention ratios in the industry; the trustys 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 watertight release statements about a change in dividend policy. This puts up a red pivot for Ms. Kate Stark of First integrity 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: Orderessay

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