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A firm's debt to equity ratio varies at times because A. a firm will want to sell common stock when prices are low and bonds

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

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

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

C. the market allows extensive leeway in the debt to equity ratio before penalizing the firm with a higher cost of capital.

D. all of the above answers are correct

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