The article explores different theories on how a company's mix of debt and equity affects its value. It categorizes these theories into two groups: those that say there is an ideal mix of debt and equity, and those that say there isn't. Using a system dynamics approach and VENSIM software, the researchers studied how a company's capital structure and stock price are related. They found that using more debt in a company's capital structure affects the cost of debt and equity, but not the stock price significantly. Overall, the stock price is not very sensitive to how a company is financed.