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What are the effects of financing strategies on cost of capital?

What are the effects of financing strategies on cost of capital?
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Financing strategies are made in respect of sources of finance, capital structure, use of debt. They are made in such a way that the requirement of fund is met with choice of the finance model with least cost.

Debt is used strategically to minimize the overall cost of capital. This is called leveraging. Debt should be used in the finance mix because it is cheaper, it doesn't affect the control/voting power of existing stockholders but it is riskier because of its obligation of payment of interest even when there is no profit.

therefore,

fianacial strategies are made in such a way that which would minimize the overall cost of capital still fulfilling the requirements for fund.

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