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!
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