You're given the following details of an acquisition of Target Co. by Acquirer Ltd.. What is the pro forma FY+1 cash flow per share (CFPS) accretion/dilution for Acquirer Ltd.? Assume that the pro forma share price for Acquirer Ltd. is equal to its standalone price. Also, assume that equity raised by Acquirer Ltd. in the public markets.

Acquisition of Target Co. by Acquirer Ltd.
Acquisition Structure Assumptions
Acquisition Premium		15%
Equity Issuance Discount (to Current Price)		6%
Debt Financing	35%	$15,014
Equity Financing	65%	$27,883
Acquirer and Target Assumptions
	Acquirer Ltd.	Target Co.
	Acquirer	Target
Share Price ($/sh.)	$2,169.58	$31.00
Fully Diluted Shares Outstanding (MM)	362	1,213
Net Debt	$46,818	($347)
FY + 1 Normalized Net Earnings	$16,581	($406)
FY + 1 Normalized Cash Flow	$48,877	$233
Pro Forma Adjustment
FY + 1 Normalized Net Earnings		$1,870
FY + 1 Normalized Cash Flow		$449
Pro Forma Net Debt		$59,916

Review Later

-2.75%

+1.40%

-2.08%

-2.29%