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If Company A buys Company B with the following metrics, what is the Accretion or Dilution for Company A? Use the provided pro forma share
If Company A buys Company B with the following metrics, what is the Accretion or Dilution for Company A?
Use the provided pro forma share count below.
| Company A | Company B | |||
| Revenue | 140.0 | 90.0 | ||
| Net Income | 45.0 | 25.0 | ||
| Tax Rate | 35% | 30% | ||
| Shares outstanding | 120 | 80 | ||
| Share Price | 10.00 | 7.00 | ||
| Estimated pre-tax income acquisition adjustments | 9 | |||
| Estimated pro forma share count | 190 | |||
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Manage Finances And Develop Financial Plans Running Your Business Better
Authors: Ian Birt
6th Edition
1925716368, 978-1925716368
