Factors Affecting Dividend Reinstatement

A public company, XYZ Corp, has consistently paid annual dividends for the past decade, reflecting a strong commitment to returning value to shareholders. Recently, however, the company’s board of directors has decided to temporarily suspend its dividend payments to allocate funds toward a significant expansion project expected to enhance long-term growth. The company's CFO mentioned that this decision might impact investor sentiment and the firm’s cost of equity. To analyze the effects of this decision, investors should consider various factors that affect dividend policy.

Which of the following factors is most influential in determining the ability of XYZ Corp to reinstate its dividends post-expansion?