Which of the following statements regarding a capital structure decision is FALSE?

a company might choose to finance a project with equity bc it fears that issuing more debt will downgrade its credit rating

a company might choose to finance a project with equity bc its current capital structure is more highly leveraged than the industry average

a company might choose to finance a project with debt bc it fears the undervalued common stock will drop further in price

a company might choose to finance a project with equity because interest rates are lower than expected