Which of the Following Statements Is FALSE

Multiple Choice

Which of the following statements is FALSE?

A) When we relax the assumption of a constant debt-equity ratio,the FTE method is relatively straightforward to use and is therefore the preferred method with alternative leverage policies.
B) When debt levels are set according to a fixed schedule,we can discount the predetermined interest tax shields using the debt cost of capital,r_D.
C) With a constant interest coverage policy,the value of the interest tax shield is proportional to the project's unlevered value.
D) When the firm keeps its interest payments to a target fraction of its FCF,we say it has a constant interest coverage ratio.