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	90
Net Income	45	25
Tax Rate	35.0%	30.0%
Shares Outstanding	120	80
Share Price	10.00	7.00
Estimated pre-tax income acquisition adjustments		9
Estimated pro forma share count		190

• 3.9%
• -1.2%
• -1.8%
• -4.3%
• -6.7%

If Company A buys Company B with the following metrics, what is the effect on Pro forma Pre-tax Income of an additional $80 write-up of Target assets?

Assume Assets have a useful life of 10 years. Use the provided pro forma share count below.

	Company A	Company B
Revenue	140	90
Net Income	45	25
Tax Rate	35.0%	30.0%
Shares Outstanding	120	80
Share Price	10.00	7.00
Estimated pre-tax income acquisition adjustments		9
Estimated pro forma share count		190

• Decrease of 80
• Decrease of 8
• Increase of 8
• Increase of 28
• Increase of 80