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Unformatted text preview: Executive Summary Statement of the Problem FPL Group Inc. (FPL) is the largest electric utility company in Flordia. FPL has been operating with consistent growth since 1925, and has paid an increasing dividend for the last 47 years. Recently, the utilities industry has undergone deregulation, allowing consumer to choose their own distributor. With the subsequent increased competition, FPL is considering freezing or reducing its current dividend in order to devote more profit to future growth. As a result of this uncertainty, FPLs stock price has fallen a significant 6% in one day. Analyst Kate Stark of First Equity Securities had previously issued a hold recommendation based on the assumption that FPL would maintain or slightly increase its dividend. Kate Stark must now decide if she should change her stance, and if so, dividend....
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This note was uploaded on 04/05/2012 for the course FIN 371m taught by Professor Staff during the Spring '08 term at University of Texas at Austin.
- Spring '08