Technical Question - Cash flow statement
Firm A acquires Firm B by only issuing debt.
How does this affect Firm A's I/S, B/S, & cash flow statement?
My answer:
Increased A & L for firm A, increased interest expense, Firm B's net income must be greater than the interest expense being paid by firm A to be Accretive. Am I missing a major point in this question?
Thanks
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