KomFi. Academy

easy · Investment Banking Valuation & Core Concepts

A buyer is performing an accretion/dilution analysis. The acquirer has a $P/E $ of 20x and the target has a $P/E $ of 15x.

In a 100% stock deal with zero synergies, the deal is most likely:

  1. Accretive
  2. It depends on the WACC of the combined entity.
  3. Dilutive
  4. Neutral

Sign up free to see the explanation and track your rank →

More Investment Banking Valuation & Core Concepts practice

All Valuation & Core Concepts questions · Investment Banking study guide · Investment Banking glossary · Investment Banking flashcards