easy · Investment Banking ma-lbo
Company A acquires Company B in an all-stock transaction. Company A has a P/E multiple of 20x, and Company B has a P/E multiple of 15x.
Without accounting for synergies or transaction costs, how will the deal affect Company A's EPS?
- The deal will be dilutive.
- The deal will be accretive.
- The deal will be break-even.
- The impact cannot be determined without knowing the absolute Net Income of both companies.
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