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?
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