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

1 Comments

Sk3tchi

IB

9y

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