Please rephrase the following passage in at least 200 words

Yes it is not a good idea to use all debt or all equity to fund new initiatives. It is better for the company to have a optimal mix of debt and equity. There are various tools to find optimal mix that are trade on equity , wacc and many other . The optimal mix is beneficial for company because if in case company can finance all the funds from the debt then there is a high burden of interest on the company and we know debt are risk free so company has a liability to pay the amount of interest even company is in loss or not earning profit and let us suppose if company can finance all the funds from equity and cost of equity is 15% and cost of debt is 10% then company has to pay dividend at more as cost of equity is high as compared to cost of debt so company needs to pay more in case of equity That's why if company has a optimal mix then company can have a weighted average cost of capital And if company earns more profit then company have to pay debtors only up to a limited interest and rest to shareholders and if company face loss then company can take or recovered the loss from shareholders.