Stockholders can transfer wealth from bondholders through a variety of actions. How would the following actions by stockholders transfer wealth from bondholders? An increase in dividends A leveraged...

Stockholders can transfer wealth from bondholders through a variety of actions. How would the following actions by stockholders transfer wealth from bondholders?

• An increase in dividends


• A leveraged buyout


• Acquiring a risky business


• How would bondholders protect themselves against these actions?