Oral Communication You are the chairman of the board of directors of a corporation with a long and successful history. Stock prices have been stable and a regular dividend has been paid each year for the past 10 years. The board has decided that the business needs to invest money to upgrade facilities and equipment. They believe the best choice is to retain all profits for the next three years and not pay a dividend. Interest rates are high, so borrowing the money would be expensive. The board does not want to issue new stock and dilute the value of current stock. Prepare a three-minute speech you will deliver to stockholders at the annual meeting justifying the decision.

You know many stockholders will be upset that they won’t receive the expected dividends.