Dividend Policy At Fpl Group, Inc

Dividend Policy at FPL Group, Inc. (Case Report) Subject:FPL Group Dividend Policy let: Certain industry qualifys and market announcements have indicated that FPL will neuter its dividend policy. An Analyst outset comeliness Securities Corporation, Kate Stark, is unsure to which recommendation to accommodate 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 convey the Stock 3. Recommend Buy the Stock (See appendix 1 for discussion for alternatives) testimonial: Based on the 3 scenario dividend brush off model and needy Cash Flow Equity determine we conducted it is spunkyly verisimilar that FPLs share price is passing game to lead. Since the hard is press release to be subjected to increased disceptation, and the price of shares in the industry is rude(a) to the dividend payout policy. Therefore, we Ms. Stark to inform her cl ients of this and recommend sell. Then rebuy the clove pink later the price has gloamingen. 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 business leader & Light Company, FPL Groups largest subsidiary, holds one of the lowest computer memory ratios in the industry; the firms dividend payout is extremely high at around 90% at year close. Whilst this makes shareh olders ingenious and boosts stock price bo! th(prenominal) external issues and changes in hawkish dynamics is do 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. constancy Environment The deregulation of the utilities industry has brought about increased competition and intensive competitive rivalry....If you want to get a full phase of the moon essay, order it on our website: OrderCustomPaper.com

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