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

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All of these options are accurate statements that explain why a firm's debt-to-equity ratio may vary at times. A company will want to sell common stock when prices are high and bonds when interest rates are low, as this can help them minimize costs over the long run. Additionally, the market may allow for some leeway in the debt-to-equity ratio before penalizing the firm with a higher cost of capital, giving them some flexibility in their financing decisions.

A Firm's Debt-To-Equity Ratio Varies at Times Because