Debt and equity are considered entities

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Reference no: EM1366707

Suppose the given statement by a financial manager: "Since we are financing our new manufacturing facility 100 percent with equity, we must evaluate it using a higher rate of return than we would if we financed a portion of the facility with debt." Do you agree? Why or why not? Be sure to fully explain the rationale behind your argument.

Reference no: EM1366707

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