Which of the following is incorrect?

1. Accretion / dilution in EPS is less important for private companies considering making an acquisition.

2. Dilutive deals in 100% stock sales imply the target is overvalued at the offer price.

3. Sellers in stock deals structured with floating exchange ratios are generally less concerned with accretion / dilution in EPS than sellers in stock deals structured with fixed exchange ratios.

4. When a low PE company acquires a high PE company in a stock sale, the deal will likely start out dilutive.