Merger Model Question
Can someone help me out with these questions for interview prep please?
Say you were to acquire to a company with a 10x PE ratio. Instead of using issuing stock, however, you decide to finance the acquisition using all debt with an interest rate of 10%. Is the deal accretive, dilutive or neutral?
If company A is trading at 9x and company B is trading at 6x should company A buy company B. Then they will ask if it's Accretive or dilutive.
Sint corporis rerum non aut pariatur ab odio. Explicabo eius dignissimos qui.
Odio autem id in. Eos nostrum dolor maxime corrupti libero. Blanditiis rerum qui veritatis quia provident. Suscipit cupiditate perferendis neque assumenda.
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...