Dividend Policy FPL Group Inc Financial Management - I Group 11 Kinnari 20121026 | Krutika P 20121028 | Tushar 20121058 | Vijay 20121062 Agenda Case Background Decision Rationale Financial Analysis Reflection and conclusion Financial Management – I | Dividend Policy at FPL Group Inc. Case Backgound Synopsis Current Situation Case Description Recommendation Competitive Position Financial Management – I | Dividend Policy at FPL Group Inc. Background behind FPL’s decision in dividend
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INTRODUCTION That report is a detailed review of dividend policy and whether or not could affect the market value of the company. When companies make profits‚ managers have to decide either to reinvest those profits for the good of company or either they could pay out the owners (shareholders) of the firm in dividends. Once they decide to pay dividends they may possibly establish a permanent dividend policy‚ which is the set of guidelines a company uses in order to decide how much of its profits
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of bank dividend policy: revisited John Theis and Amitabh S. Dutta D. Abbott Turner College of Business‚ Columbus State University‚ Columbus‚ Georgia‚ USA Abstract Purpose – The purpose of this paper is to examine the Dickens et al. model of bank holding company dividend policy. They identified five explanatory factors in a sample of bank holding companies (BHCs). Banking companies typically pay larger dividends and more often than industrial firms. Investors often look at the dividends as being
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Contents Introduction 2 Theories and Determinants of Dividend Policy (Section 1) 2 Tax and Clienteles Theory 2 Free cash flow and the Agency Theory 3 Growth and The Lifecycle theory 4 Firm size 5 Information Asymmetry and Signaling theory 5 Risk and the Bird in hand theory 7 Profitability 8 Conclusion 9 Analysis of Apple and Dell Dividend Policy (Section 2) 9 Apple Inc. 9 Dell Inc. 11 Conclusion 13 Reference 14 Introduction In a private firm‚ after a period of business activity the owner of the
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Dividend Policy at FPL Group FPL Group Overview: The FPL Group was Florida’s largest electric utility group and the fourth largest in America. The FPL Group had annual revenues of exceeding $5 billion. Florida Power & Light Company‚ the main subsidiary of the FPL Group had 3.9 million customer accounts and covered a service area that included six of America’s ten fastest growing metropolitan areas. a. Summarize the key elements of FPL’s financial policy and compare it with other relevant
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Subject: Dividend Policy at FPL Group‚ Inc. Problem: Should FPL cut dividend? And should Stark revise her investment recommendation? Options: 1) Keep dividend per share growth at 1.65% 2) Dividend per share grows at 1% 3) Keep dividend per share constant at $2.46 4) Cut dividend by 30% and repurchase 10 million shares each year after the cut Recommendations: We recommend FPL to cut dividend by 30% in order to free up more cash to facilitate its growth and fight the upcoming competitions
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debt capacity if: a. no dividends are paid? b. a 20% payout is pursued? c. a 40% payout is pursued? d. a residual payout policy is pursued? Note that case Exhibit 8 presents an estimate of the amount of borrowing needed. Assume that maximum debt capacity is‚ as a matter of policy‚ 40% of the book value of equity. In addition‚ please check TN_26 provided in blackboard which will help you verify this question. Pays no dividends – If it pays no dividends‚ then Gainesboro would be
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27 (2003) 1297–1321 www.elsevier.com/locate/econbase Corporate governance‚ dividend payout policy‚ and the interrelation between dividends‚ R&D‚ and capital investment Klaus Gugler * Department of Economics‚ University of Vienna‚ WP No. 9803‚ Br€nnerstrasse 72‚ 1210 Vienna‚ Austria u Received 12 October 2000; accepted 5 November 2001 Abstract This paper investigates the relationship between dividends and the ownership and control structure of the firm. For a panel of Austrian firms
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Coca-Cola Dividend Policy The definition of dividend is as follows: A dividend is the distribution or sharing of parts of profits to a company ’s shareholders. Now the question is why do companies pay dividends to it s shareholders? Because it’s the shareholders that are the real owners of the corporation and one would not own a piece of anything unless it would make money for them. So in turn a company wants to pay dividends to keep the shareholders happy and show that they are being profitable
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IMPACT OF DIVIDEND POLICY ON THE MAXIMIZATION OF SHAREHOLDERS WEALTH. BY LASISI TIRIMISIYU KUNLE REG NO: U08AC1128 Being A Research Project Submitted To The Department Of Accounting‚ Faculty Of Administration‚ Ahmadu Bello University Zaria‚ In Partial Fulfillment Of The Requirements For The Award Of Bachelor Of Science (B.Sc) In Accounting DEPARTMENT OF ACCOUNTING FACULTY OF ADMINISTRATION AHMADU BELLO UNIVERSITY‚ ZARIA JULY‚ 2012 TABLE OF CONTENT CHAPTER ONE: INTRODUCTION 1.1 Background
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