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!
Laboriosam laudantium numquam corporis cum nihil id repellat. Quaerat laborum aliquid fuga sit velit qui culpa dolorum. Non in sed est dolorem reiciendis impedit. Vero commodi fugit ad architecto ut est.
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...