easy · Investment Banking ma-lbo

In an all-stock merger, AcquirerCo has a P/E multiple of 15x and TargetCo has a P/E multiple of 20x.

Without considering synergies, will the deal be accretive or dilutive to AcquirerCo's Earnings Per Share (EPS)?

  1. Accretive
  2. Accretive, but only if TargetCo has more debt
  3. Neutral
  4. Dilutive

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