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a . If the Pro Forma EPS of two combined companies is higher than the EPS of the acquirer on a standalone basis, the transaction
a If the Pro Forma EPS of two combined companies is higher than the EPS of the acquirer on a
standalone basis, the transaction is said to be
A Accretive
B Dilutive
C Breakeven
D Consensus
b Which of the following historical financial data is the least relevant for framing projections and per
forming LBO analysis?
A Sales growth
B EBITDA and EBIT margins
C Capex
D Interest Expense
c Under what circumstances might a strategic buyer use LBO analysis
A To determine the debt capacity of their company
B To determine the price a financial sponsor bidder can afford to pay when competing for an asset
in an auction process
C To help spread comparable companies analysis
D Strategic buyers would not use LBO analysis
d The sum of the mandatory and optional repayments for each debt instrument from the debt schedule
is linked to
A Balance Sheet
B Cash Flow Statement
C Income Statement
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