Recently, in the board of directors meeting, one of the directors proposed to declare cash dividends of RM1 per unit. However, some of the directors believe that it is necessary for the company to reserve some cash due to the uncertainty of the economy. Those who appose the proposal argue that during this pandemic, it is very difficult to predict the performance of the company and some clients may face difficulties to make payments that may result in a cash flow problem.

a. Identify and explain the possible alternatives regarding the dividend decision. Use relevant dividend theories to support your answer. [20 marks]