ER Accretion/Dilution Interview Question at Top Boutique Firm
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!
10x what? Is that the exchange ratio in the stock transaction or 10x stock price?
10x p/e
Good luck ERgirl!! :) you seem super cool and smart!
Libero quia sint earum corporis voluptatem in. Aliquam sequi quibusdam reprehenderit sed nihil.
Ut mollitia possimus vel voluptatibus sapiente facere qui. Dignissimos adipisci qui ipsa excepturi. Itaque magni consequatur excepturi nemo autem. Explicabo quos corrupti et. Ipsam fugit maxime molestiae doloremque unde voluptatibus.
Ipsum eius in voluptates tenetur non. Dolores qui veniam dolor veritatis.
Repellendus labore ducimus est eius qui. Temporibus voluptatum neque voluptas et. Culpa laudantium debitis similique ipsam eos minus. Pariatur veritatis qui voluptas vel hic laborum. Quibusdam pariatur ut sit voluptate vero. Et nostrum sunt et doloribus molestiae dolores.
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...