CASE STUDY 02 Essay Example | Topics and Well Written Essays - 1000 words

CASE STUDY 02 - Essay Example The debt position of the company is more or less the same as that of its peers. 7 Dividend policy forms an integral part of corporate finance. It looks obvious that the company must reward its shareholders by declaring high dividends. But then the question is if the company declares all of its earnings as dividend merely to keep the shareholders happy then this will perhaps retard the future growth prospects. For this reason the companies do not declare all its earnings as dividend but they plough back a certain portion of the earnings in the form of ‘Retained Earnings’. The companies pay a lot of attention to ‘dividend policy’ as a fall may invite the wrath of the shareholders and a rise can come in the way of the growth prospects (Ross, et al., 2008, pp. 590). The dividend payment of FPL Group Inc has been on an upward move for the last ten years. In the year 1984 the company declared a dividend per share of $1.77 that reached the levels of $2.47 in 1993. Unlike the steady rise in the divided the earnings per share (EPS) of the company passed through fluctuations on many occasions but the impact of this was not felt on its dividend payment pattern. In fact in the year 1990 FPL Group incurred a net loss of $391.005 million resulting in a negative EPS of $2.86. But even in this year the company declared a dividend of $2.34. The main incentive of a share issue is that payment of dividend is ‘not obligatory’ i.e. a company pays dividend only when it is able to generate sufficient amount of earnings. But this seems to be inapplicable in the real world as is evident from the case of FPL Group. However it is anticipated by the analysts that the group will either cut dividend or keep it stable at the existing level of $2.48 per share . In 1993 FPL Group maintained a dividend payout ratio of 91% which is the highest as compared to its peers. During this period Duke Power Co. maintained a payout ratio of 68%, Florida

Question 2 Z Essay Example | Topics and Well Written Essays - 1250 words

Question 2 Z - Essay Example However, their distinct differences in terms of formation, structure and ultimate objective distinguishes them. Interest groups are encapsulated within the blanket of pressure groups, which are organizations that are formed on a voluntary basis and are private in nature operating not to form a government but aims at influencing and regulating policies that a government formulates. Pressure groups are either cause groups or Interest Groups (Kenneth 200). Pressure Groups are the groups that aim to influence the government politically, a significant distinctive feature. Interest groups are different from cause groups as they (interest groups) focus on occupational aspects that affect their members; be it issues to do with business, trading, and professional regulations among others. Its main focus revolves around the welfare of those they fight for in occupational capacities. For example, a Teacher’s Union would raise teachers’ grievances to the Ministry of Education concerning delayed salaries. Structures and hierarchical line of power that commands broad edges of issues affecting people with a belief that given a chance they can provide solutions to those problems. They aim to escalate to power and provide political governance to the people and the issues they touch on are much more general than those of interest groups, which are only about occupational issues. As referenced by Caramani (200), adapted from Huckshorns (1984:10), a political party is a group of independent individuals whose aim is to compete in nominations and run for elections in order to escalate to power and have control of the government. Arguably, political parties aim to escalate to power and capture government offices that give it a mandate for governance. According to Caramani (268), Social Movements are collections of individuals with a clearly recognized rival and are involved in a battle and share a central