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Question 3 )Calculate the accretion/(dilution) on a dollar amount basis using the information below. ($ in millions) Pro Form Combined Net Income $1,046 Acquirer Standalone

Question 3 )Calculate the accretion/(dilution) on a dollar amount basis using the information below.

($ in millions) Pro Form Combined Net Income $1,046

Acquirer Standalone Net Income $775 Standalone Fully Diluted Shares Outstanding 200 Net New Shares Issued in Transaction 40 Tax Rate 40%

A)

($0.50)

B)

$0.50

C)

($0.48)

D)

$0.48

*I had answered "C" but it was inncorrect.

Question 7) An accretion/(dilution) analysis is typically performed by:

a.

Public strategic buyers

b.

Financial sponsor buyers

c.

Non-Public Foreign buyers

d.

Family-owned sellers

* i had answered "B" but it was inncorrect.

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