Accretion Dilution exercise

Hi Guys,

Could you please help me to find an answer for the following exercise?

Firm with NI=200 holds 100% of a subsidiary. IPO of 30% of the subsidiary for 1bn in cash proceeds and P/E (subsidiary) of 20

Accretion/Dilution (percentage)?

Impact on leverage?

Thank you

5,956 WSO Academy Investment Banking Session Reviews: 4.82/5

University of Central Florida

Class of '27 Nov 2026 Cohort

5.00/5

Investment Banking Career Roadmap (optional)

“Went into the meeting choosing slightly the wrong option selected. The purpose because I already have a career roadmap kind of laid out but was looking for more of a focus on the next steps for recruiting and next few weeks but Tim had no problem with it made sure to emphasize the reason he was there was to help me. Even though I had lot of general questions that were we sort of ambiguous to answer he gave me clear direction with each question based on his experience and made sure to not discourage me from anything.”

Class of '23 Sep 2026 Cohort

5.00/5

Investment Banking Short Resume Review / Recap

“Jean Philippe completely reshaped how I present my career journey. During our resume review, we focused intensely on building a cohesive narrative that would help me break into investment banking. In my skills section, John Philip flagged financial techniques that needed urgent work, specifically highlighting financial modelling as an area I must strengthen. Moving to my professional experience under Masterclass Cricket, he pushed me to move past generic duties and instead inject tangible outcomes that prove my commercial value. To bridge my current experience with banking, we mapped out future financial paths—like pursuing an equity research internship—to solidify that core section of my CV. Ultimately, our discussion wasn't just about tweaking bullet points; it was about painting a consistent, powerful image across my business, sports, and education to prove I am ready for the industry.”

See All 11,087 WSO Academy Reviews

1 Comments

Sk3tchi

IB

9y

Best Response

Porro dolor quo repellendus consectetur nisi animi autem. Eos ut ipsam cupiditate minus. Officiis aliquid et fugit et veritatis. Fuga et labore reprehenderit inventore veniam aut. Reprehenderit qui cupiditate tenetur et.

Architecto eius non delectus. Sapiente est facilis voluptatem commodi corporis. Assumenda repudiandae qui unde nihil est deserunt vel.

Reply

Quote

Report

Other

Authored by: Certified Investment Banking Professional - 1st Year AnalystCertified Investment Banking Pro

+136	UBS Catastrophic Q1-Q3 26, M&A -17%, Outside Top 10 in Americas, EMEA & APAC	36	5h
+50	Banking (Un)fortunately Still Needs You: My Case for Bankers in the AI Era	15	2d
+46	PWP acquisition by Piper cancelled	13	1h
+31	New analyst: how are you thinking about learning to model when AI is getting this good?	6	5d
+29	UBS IB #24 in US M&A in 2026	10	4d
+25	Houston banking Gods ?	16	13h
+23	Evercore poaches Baird DC Defense Team	12	1h
+20	Best Houston Banks for Culture in 2026	11	6m
+18	How to Exit a Sweatshop	4	4d
+18	Normal for lateral process to go +2 months?	3	20m

1	redever	99.2
2	BankonBanking	99.0
3	kanon	99.0
4	Secyh62	99.0
5	Betsy Massar	98.9
6	CompBanker	98.9
7	GameTheory	98.9
8	dosk17	98.9
9	DrApeman	98.9
10	Mimbs	98.8

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

Accretion Dilution exercise

Score Breakdown

Feedback

Score Breakdown

Feedback

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

Accretion Dilution exercise

See All Comments - 100% Free

Trending Content - Investment Banking Forum