> In number two they have more control because if an opportunity comes up that costs say 10 billion, Company B can act on that and Company A cannot. You missed

> In number two they have more control because if an opportunity comes up that costs say 10 billion, Company B can act on that and Company A cannot. You missed the example completely. Both companies raised $10B, either through debt or equity, and both of them spent/invested the money immediately. Net result: both of them have equal amounts of cash in the bank. But one of them has a market cap $10B higher than the other. Simply because of a tactical choice they made in financing. There are minor advantages/disadvantages involved in debt vs equity financing. However, these differences are all 2nd order effects. At a macro level, they have remarkably similar financial outcomes. Read up on Modigliani-Miller Theorem if you don't get this concept.