answer these questions form the case.

answer these questions form the case.

Florida Power & Light Case Questions:

1. Why do firms pay dividends? What are the advantages and disadvantages to paying dividends?

2. From FP&L’s perspective, is the current payout ratio appropriate? Why or why not? Would a higher or lower payout ratio be more appropriate? Why or why not?

3. From an investor’s perspective, is FP&L’s payout ratio appropriate? Why or why not?

Solution Preview

Dividends are the slightest additional pay outs that someone gets when they are shareholders in a company. They are a sign of the company’s income. Companies pay dividends to increase the worth of their shareholders and to lessen the expenses of the agency related

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