Dilution Question
Interview question with only the following information:
If a company with P/E of 10 acquires a company of P/E 12, is it dilutive?
Does it matter what the cash/debt/stock composition is since the targets P/E is higher? Or will it be dilutive regardless?
Bump
It's dilutive and you can say so only if it's 100% financed with stocks
Well is it possible to be accretive if it’s a non all-stock deal?
Theoretically the foregone interest on cash or the interest in debt would have to be negative right?
Delectus non in nobis similique quasi. Veniam aut repellendus quaerat totam temporibus veritatis aut. Consequuntur omnis ut consequatur rerum vel quasi ut. Ipsa suscipit et repellat deserunt.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...