easy · Investment Banking ma-lbo

In a 'Stock-for-Stock' merger, what is the primary determinant of whether the deal is accretive to the acquirer's EPS?

  1. The amount of cash on the target's balance sheet.
  2. The target's Dividend Yield.
  3. The relative P/E multiples of the acquirer and the target.
  4. The interest rate on the acquirer's revolving credit facility.

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