Got a question about EV. If EV is treated theoretically as the purchase price of the company, then if the company had more debt then the EV would increase, so the company is more expensive to buy?
EV = market cap plus net debt
1) if you raise debt, you have cash and net debt is the same, so EV is the same
2) if you two companies that are exactly the same with one having more debt than other, share price implicitlly values the company with more debt as riskier