easy · Investment Banking

A buyer is performing an accretion/dilution analysis. The acquirer has a $P/E $ of 20x and the target has a $P/E $ of 15x. In a 100% stock deal with zero synergies, the deal is most likely:

  1. Accretive
  2. It depends on the WACC of the combined entity.
  3. Dilutive
  4. Neutral

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