Which of the following is NOT an implication of the pecking order theory of capital structure?

A$)$ On average, a firm$$s stock price drops when it announces an equity issue.

B$)$ Firms may want to maintain a reserve of cash or unused borrowing capacity.

C$)$ More$-$profitable firms $($all else equal$)$ should have higher debt ratios.

D$)$ Firms may fail to undertake attractive investments if they would have to be financed with a new issue of equity.