Gamma Inc is considering acquiring Beta Plc.

Gamma Inc's P/E ratio is 18x.

Beta Plc's P/E ratio before acquisition premium is 20x.

Gamma can borrow money at 5% and the tax rate is 40%.

Assume there will be no synergies.

Which of the following statements is incorrect?

• The acquisition is likely accretive if financed 100% with debt

• The acquisition is likely accretive if financed 100% with stock

• Debt P/E is around 33.3x

• The acquisition is likely dilutive if financed 100% with stock