easy · Investment Banking
An analyst is evaluating an all-stock merger. Acquirer Co has a P/E of 20x and Target Co has a P/E of 10x (including the premium).
Assuming no synergies and ignoring the impact of new D&A, will this deal be accretive or dilutive to the Acquirer's EPS?
- Cannot be determined without the share prices
- Dilutive
- Neutral
- Accretive
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