Technical Query: Pre-Tax Accretion/Dilution
IB
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(Senior Baboon, 217
Points)
on 10/26/10 at 12:31am
So I've been asked to get a pre-tax accretion/dilution number. I've arrived at my tax effected number, but either my brain is frazzled or I'm dumb, because I can't land on the correct pre-tax number. MD & Associate are asleep. Any help would be much appreciated. If I'm being vague, let me know.





do you mean pre-tax synergies
do you mean pre-tax synergies to break even? If so, take accretive/dilutive $ amount and multiply by # of diluted shares and divide by (1-t)
NI is an after-tax #, not sure why you want pre-tax accretion/dilution
Right I have pre-tax
Right I have pre-tax synergies to break even. I thought it was an odd request, but I'm thinking he simply wanted me to add taxes back to the acquirer and pro forma net incomes to see what it spits out. Thanks for the quick response!