A firm's debt$-$to$-$equity ratio varies at times because

Multiple Choice

a firm will want to sell common stock when prices are high and bonds when interest rates are low.

a firm will want to take advantage of timing its fund$-$raising in order to minimize costs over the long run.

the market allows some leeway in the debt$-$to$-$equity ratio before penalizing the firm with a higher cost of capital.

All of these are accurate statements.