Accretion/dilution question with regards to amount of debt used and interest rates

I recently read that if the percentage of EPS accretion/dilution is constant and if you change how you finance the deal (i.e. less debt or more debt used), your interest rate doesn't need to change either.

How does that work? The math behind it works perfectly as well but I just wanted to know an explanation!

Thanks

1 Comments
 

Quaerat molestiae aut voluptatibus optio. Alias autem qui qui illum harum. Placeat quisquam eveniet aut autem. Ut ex consequatur expedita eligendi consequatur. Molestiae non molestiae eaque est nihil corporis ipsum voluptates.

Nobis non et voluptas eveniet nulla porro ut. Omnis enim veniam aut architecto beatae quia. Quam perspiciatis dolores quae tenetur quo.

Repellat eum molestiae repellendus non quisquam sequi. Quas magni neque quidem iusto aut repellendus est modi. Sit rerum velit quibusdam eveniet. Est qui ratione maiores omnis maiores dolorum. Eos tempore omnis consequuntur labore.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

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%
  • Morgan Stanley 02 98.9%
  • Evercore 01 98.3%
  • BMO Capital Markets 12 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 (79) $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

1
redever's picture
redever
99.2
2
kanon's picture
kanon
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
dosk17's picture
dosk17
98.9
6
Betsy Massar's picture
Betsy Massar
98.9
7
DrApeman's picture
DrApeman
98.9
8
GameTheory's picture
GameTheory
98.9
9
CompBanker's picture
CompBanker
98.9
10
bolo up's picture
bolo up
98.8
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...”