The assumption that the firm's debt-equity ratio is constant means:
A)the firm's cost of capital will not fluctuate when it accepts a new project.
B)corporate taxes are the only imperfection.
C)the risk of its debt and equity will change when it accepts a new project.
D)the firm adjusts its leverage to maintain a constant debt-equity ratio in terms of book value.

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The Answer of The assumption that the firm's debt-equity ratio is constant means:
A)the firm's cost of capital will not fluctuate when it accepts a new project.
B)corporate taxes are the only imperfection.
C)the risk of its debt and equity will change when it accepts a new project.
D)the firm adjusts its leverage to maintain a constant debt-equity ratio in terms of book value.

The Assumption That the Firm's Debt-Equity Ratio Is Constant Means