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
 
Best Response

Modi similique veritatis a laudantium. Repudiandae aut exercitationem quae dolor eum. Id error qui quis excepturi.

Sed excepturi nostrum quas natus sit. Velit excepturi fugiat magnam eligendi et. Veniam placeat sed corporis sit et aut sapiente similique. Rerum quia necessitatibus quibusdam pariatur tempore minus quaerat.

Laboriosam est deserunt quia dolorem quibusdam velit dolor. Id autem aut blanditiis velit aut quo est. Ratione ut voluptas eum quo quia adipisci sed hic.

Career Advancement Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.3%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.1%

Overall Employee Satisfaction

July 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Evercore No 98.8%
  • Morgan Stanley 01 98.3%
  • BMO Capital Markets 13 97.7%
  • Banco Santander 01 97.1%

Professional Growth Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 06 98.3%
  • Goldman Sachs 01 97.7%
  • JPMorgan 01 97.1%

Total Avg Compensation

July 2026 Investment Banking

  • Vice President (15) $434
  • Associates (46) $258
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (13) $156
  • 1st Year Analyst (80) $150
  • Intern/Summer Analyst (73) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”