The Shareholders of Beta Corp., a small but highly profitable privately held company are pressuring management to build up the company cash balances. Management is not in favor of doing that and to appease the shareholders has proposed a cash dividend or some other form of distribution of the cash.

What would you do given that short-term interest rates are under 1% and the cash dividend rate per share would be 2% ?

Pease support your opinion but keep your answer short.