Should a cash dividend be paid? In the past, Valley Mills Construction, Inc. has always paid an annual cash dividend of $0.25 per share. This year, though, the board of directors wants to conserve...

Should a cash dividend be paid?

In the past, Valley Mills Construction, Inc. has always paid an annual cash dividend of $0.25 per share. This year, though, the board of directors wants to conserve cash for expansion. The board is considering not paying the cash dividends but is concerned that stockholders will be upset when the announcement to not pay a dividend is made. What should the board do?