Florida Power Dividend Policy

Dividend Policy at FP: pigeonholing, Inc. 1. Firms pay dividends to sh beholders out of their profits (earnings). These dividends bath either be compensable out in cash, stock, or property. When a corporation earns a profit, that gold can be put to two uses: it can either be re-invested in the business (retained earnings), or it can be paid to the shareholders of the telephoner as a dividend (http://en.wikipedia.org/wiki/Dividend). Dividends can be an advantage when they cast new investors. Dividends can be used as a marketing tool by firms to entice investors to invest in their company. Some investors invest in companies based on the centre of dividends they receive. Dividends are also measurable for investors to see past and expect dividend payouts as a bulls eye of how the company is doing. High dividends/ dividend pass judgment growth is a sign of a company with a positive future outlook. Investors see high dividends as try out of a company doing well. Dividend increases are also a sign of share price increases, which is good for the company and stock-owning investors. Dividends can be a disadvantage for companies when they are re-invested in the company (retained earnings).

This could be a disadvantage because some shareholders may see the company as being presumptuous and deciding for the investor how to use their money and also investors may see this as a toughened sign of the companys future financial success. Dividends are also a disadvantage for firms because of double taxation. This is when the firm pays taxes on the money as income and also the money gets taxed again when it is paid out to the individual investors as income. 2. The most important issues confronting the FPL Group in May 1994 is retail wheeling. Retail wheeling was brought near by the governments 1970 and on deregulation of utility companies. States like calcium (and 23 other states) were considering retail wheeling, which meant that FPL would have many authority competitors, both... If you want to get a full essay, order it on our website: Orderessay

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