medium · Investment Banking ma-lbo
An Acquirer uses its own cash (earning 1.0% after-tax) to buy a Target. The Target has a P/E of 25.0x.
Is the deal accretive or dilutive before synergies and amortization?
- Accretive.
- Dilutive.
- Break-even.
- The P/E of the Acquirer is required to answer this.
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