Foregone Cash Interest
Why is foregone cash interest income subtracted in an accretion-dilution model? I would understand the concept if we were taking a projected P&L that includes the expected interest income (need to subtract the foregone interest from the cash used in transaction), but assuming the model is calc'ing interest income based on a pro forma cash balance and not a research/company model, I don't understand this.
Thanks.
If you are building an accretion/dilution model, you are implicitly relying on some form of projections for comparison purposes.
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