3. From FPL’s perspective, is the current payout ratio appropriate? Would a higher payout ratio be more appropriate? A lower payout ratio?
From FPL’s perspective, its dividend payout ratio had been increasing from 67% to 91% in 1993, which is too high for itself for that time. A lower payout ratio would be more appropriate because it was higher than its competitors and it was not monopoly again so it cannot afford such a high dividend.