Assume the firm has a debt-equity ratio of 0.4 and uses the capital asset pricing model to determine its cost of equity. As a result, the company's weighted average cost of capital:

A) would be unaffected if the dividend discount model were applied instead to determine the firms cost of equity.

B) will be unaffected by changes in the firms market risks.

C) is affected by the firm's rate of growth projections.

D) is dependent upon a reliable estimate of the market risk premium.

E) implies that the firm pays out all of its earnings as dividends to its shareholders.