Given the following information:

Buyer Target

12/31/22 shares outstanding 100,000 75,000

12/31/22 stock price $20.00 $30.00

2023 Estimated EPS $3.00 $3.50

On 1/1/23, Buyer announces it is buying Target and that they will be paying a 10% premium above the 12/31/22 stock price. The deal is expected to close on 1/2/23. The deal will be financed 25% stock, 75% debt, with debt at 7.0% after-tax cost.

Calculate:

NewCo Earnings =

NewCo Shares Outstanding=

Accretive or Dilutive?