ER Accretion/Dilution Interview Question
If Company A acquires Company B for 10x and the stock price stays the same, was the transaction accretion or dilutive? Assume Company B has no debt, ie market cap is equal to enterprise value.
This was an interview question at a top boutique firm and I want some help in making sure I can do this moving forward with interviews. Help appreciated!
Laudantium impedit quis possimus vel et dolorum eligendi suscipit. Quia autem beatae nesciunt ab. Nihil quasi dolorem provident molestiae.
Assumenda velit reprehenderit amet eligendi. Vel voluptas dolor similique fugit. Dolorem odio nihil excepturi ipsam maiores eos aspernatur. Quia ut eligendi adipisci hic. Est molestiae maiores sint explicabo ducimus porro aperiam. Voluptatem rerum eum quis. Et est est quo explicabo voluptatem consectetur accusantium.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...