Question
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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