See the answer I posted above. Under certain conditions, the same is valid for debt. Capital structure of a company (under certain conditions) has no impact on

See the answer I posted above. Under certain conditions, the same is valid for debt. Capital structure of a company (under certain conditions) has no impact on the value of the company. This is the Modigliani-Miller theorem, it got Modigliani (but sadly, not Miller) a nobel prize. Fine print: there are a bunch of conditions in the case of debt, due to tax, and so on.