Which of the Following Is a Reason Why Firms Do

Which of the following is a reason why firms do not tend to issue new shares of common stock to fund new projects?

A) Raising new capital via equity may send a unintended negative signal to the market.
B) Issuing new equity dilutes a manager's ownership stake in the firm (unless they purchase at least an equal proportion of the new shares as they currently own) .
C) By rationing capital senior managers hope to weed out investments with an optimistic bias built into the cash flow projections.
D) All of the above are reasons.
E) Only (b) and (c) are reasons.