easy · Investment Banking
In an all-stock merger, Acquirer Alpha (P/E of 25x) intends to buy Target Beta (P/E of 18x).
Assuming no synergies and no deal costs, is the transaction accretive or dilutive to Alpha's earnings per share (EPS)?
- Dilutive
- Accretive
- Cannot be determined without the share count
- Break-even
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