Stunned in interview

Hi all

Just had an interview with an APAC BB and was completely thrown off by the interviewer

He was asking basic equity value and EV questions and asked "if a company has 400m equity value and raises 200m debt to buy PPE, how would the equity value and ev change?". I responded by saying that since there was no change to CSE, equity value remains the same but the increase in PPE would increase the EV by 200. He then responds by saying that why would equity value remain the same given that debt has now increased, so the shareholders are even further back in line in terms of claim to the company (ie greater risk), and that EV also wouldn't increase by 200 exactly.

I was not sure how to respond and just wanted to hear what you guys would've done in the interview