Guided Walkthroughs
Accretion/Dilution — Step 3 of 8: Finish the all-stock math — pro-forma EPS and the accretion/(dilution) percentage.
Model answer
Pro-forma net income = 100 + 20 = $120M (all-stock, so no financing cost hits earnings; no synergies assumed). Pro-forma EPS = 120 / 56.25 = $2.1333. Versus standalone EPS of $2.00, accretion =…
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