4
The Accretion / Dilution Calculation
Combine the two income statements, layer in the deal effects, and divide by the new share count.
Lessons in this module
Module checkpoint
3 questions · score 70% or higher to pass.
1.Net income is $300M at a 25% tax rate. Pre-tax income (EBT):
2.Pro forma net income is $3,250M on 650M shares. Pro forma EPS:
3.Accretion/(dilution) is computed as: