You are a bank that has made a fixed rate, long-term loan to a publicly traded company. The company has a significant cash balance and is under pressure to act. Which of the following actions would you view as favorable to you as a lender?

a.

e. None of the above

b.

b. Make an acquisition with the cash

c.

d. Retire short term debt and hold on to the remaining cash

d.

c. Buy back stock

e.

a. Pay higher dividends