Which one of the following statements is TRUE?

a. Creditors have a claim on a firm's earning stream through the dividend payments they receive.

b. Lenders can't legally prevent a firm from engaging in asset switching.

c. Lenders will protect themselves from asset switching by charging a higher interest rate.

d. Firms borrowing money have greater flexibility to use that money when there are debt covenants.

e. An example of asset switching is an option to exchange one piece of real estate for another.