I want to comment on the given statements:
Problem 1. "The less a company needs to raise capital to finance expansion, the more money it should borrow. Instead it is those companies that need to raise new capital that should shun debt, preferring equity".
Problem 2. "Because both bondholders and stockholders demand higher rates of return on more highly leveraged firms, a company that uses less financial leverage can reduce both its cost of debt and its cost of equity. Therefore, reducing a company's debt ratio is an easy way to boost its value"