hard · Investment Banking
Vanguard (acquirer) is trading at a 20x P/E and proposes to acquire Summit (target) which is trading at a 15x P/E (at the offer price). The deal is 100% stock-financed.
Without considering synergies or accounting adjustments, what is the expected impact on Vanguard's EPS?
- Dilutive
- Depends on the share count
- Accretive
- Breakeven
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