Quantcast
Viewing all articles
Browse latest Browse all 2815

Accretion Dilution Interview Question

I was asked this question during my interview in CS, but not sure if I answered it right. Hope you guys can help.

Assume company A has P/E of 8x and company B has P/E of 10x. For simplicity, assume it's a 100% stock transaction and that A buys B. What percentage in synergies would you need to break even (no dilution or accretion)?

Only allow Certified Users to respond: 

Viewing all articles
Browse latest Browse all 2815

Trending Articles