Guided Walkthroughs
Accretion/Dilution — Step 1 of 8: Set up the deal. AlphaCorp is acquiring TargetCo. Lay out both companies' numbers and the offer.
Model answer
AlphaCorp (acquirer): net income $100M, 50M shares → EPS = 100 / 50 = $2.00; share price $40 → P/E = 40 / 2 = 20.0x. TargetCo: net income $20M, 10M shares → EPS $2.00; share price $20 → P/E = 10.0x.…
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