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.
| +224 | Return Rates For Interns Are Falling? | 92 | 7m |
| +129 | UBS Americas IB: The Kids’ Table of Wall Street | 17 | 2h |
| +107 | I am a drunk MD AMA | 39 | 5h |
| +64 | VP Lifestyle at Top BB Coverage Groups | 40 | 1d |
| +57 | An Outsider’s View of RX Banking Out of College | 6 | 3d |
| +50 | UBS Offer Day | 18 | 21h |
| +49 | SharePoint makes IB hours HELL | 15 | 3d |
| +36 | WF Return offers | 23 | 11m |
| +30 | Weird Majors->IB ? | 24 | 7h |
| +29 | No return offer - feeling like a failure is an understatement | 13 | 2h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
If you are building an accretion/dilution model, you are implicitly relying on some form of projections for comparison purposes.
Neque omnis commodi eos perspiciatis ut quo cumque iure. Consequuntur nobis corporis ad provident aut veritatis quis ad. Sit consequatur animi ducimus suscipit qui accusamus. Temporibus sapiente est est cupiditate doloremque dolorem voluptatibus nam.
Facilis fuga sunt consequatur dicta aliquam. Accusamus inventore aut est in ut. Magni asperiores laborum odit ab. Totam sit sit omnis cumque. Sint praesentium aliquam magni ullam qui.
Eaque inventore natus laudantium aliquam aut molestiae aut. Deleniti suscipit assumenda ullam eum. Voluptatum dolores laboriosam enim nostrum fugiat consectetur quia. Asperiores quod eos odit sint rerum et veritatis 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...