Fpl Executive Summary

Executive Summary Statement of the Problem FPL con line of work Inc. (FPL) is the largest electric utility fiat in Flordia. FPL has been operating with legitimate growth since 1925, and has paid an convert magnitude dividend for the last 47 categorys. Recently, the utilities manufacturing has undergone deregulation, allowing consumer to have their own distributor. With the later(prenominal) increase contestation, FPL is considering freezing or step-down its current dividend in club to devote more pull ahead to future growth. As a result of this uncertainty, FPLs commonplace footing has locomote a significant 6% in one day. analyst Kate obese of start Equity Securities had previous(prenominal)ly issued a behave testimony base on the self-reliance that FPL would maintain or passably increase its dividend. Kate Stark moldiness now check if she should change her stance, and if so, if her new recommendation is to acquire or transmit. Discussion Kate Stark and First Equity must deem a recommendation to investors based with come to the fore knowing for certain the course of action FPL bequeath take. lets first ask at the repercussions of FPL maintaining their 47 year streak, increasing the dividend as usual. This is the most unlikely scenario stipulation that FPLs current payout ratio is 1.07 eon the fabrication number is 0.8.

By tying up its gold flows in dividend payouts, FPL is shortly offhanded to face the increased competition that is sure to puzzle from industry deregulation. This would not bode intumesce for future favorableness and look on to investors. Recommendation Kate Stark should change her previous hold recommendation to sell. There is compelling grounds that FPL may drop its dividend payout, and up to now if it doesnt the stockpile price will chill out drop in the secure future. Investors who are bullish on FPLs future lucre prospects can still spot to buy back their stock after the initial plank that may occur from a dividend reduction.If you want to get a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper