If you were a bondholder lending to a firm and you were worried that stockholders would take advantage of you, which of the following actions would concern you the most? (Pick only one)

i.

ii. .

iii.

iv.

v.

a.

A cut in the dividends paid to stockholders

b.

A reduction in debt

c.

A new stock issue

d.

Expansion into a risky new business

e.

Accumulation of cash in the company