Debt financing can have a significant impact on the market value of a company. By utilizing debt to raise capital, companies can fund expansion projects, take advantage of growth opportunities, and optimize their capital structure. However, the effect of debt financing on market value is influenced by various factors. Increasing debt levels can raise financial risk, potentially reducing market value. On the other hand, debt financing can offer a lower cost of capital, provide tax advantages, and enhance profitability, which can positively impact market value. The market's perception of a company's debt management, its ability to meet debt obligations, and the preferences of different investor groups also come into play. Therefore, understanding the relationship between debt financing and market value requires a careful evaluation of the specific circumstances and dynamics surrounding the company, its industry, and the broader market conditions