Wso advanced - Study guides, Class notes & Summaries

WSO Advanced M&A UPDATED Exam Questions and CORRECT Answers What is the difference between an accretive merger and a dilutive merger, and how would you go about figuring out whether a merger is accretive or dilutive? - Ans "An accretive merger is one in which the acquiring company's earnings per share will increase following the acquisition. A dilutive merger is one in which the opposite occurs. The quickest way to figure out if a merger is accretive or dilutive is to look at the PE...

How/why do you lever/unlever Beta? - Answer-The levered beta will be the beta you get from a website like yahoo finance. "By unlevering the beta, you are removing the financial effects from leverage (debt in the capital structure). This unlevered beta shows you how much risk a firm's equity has compared to the market. Comparing unlevered betas allows an investor to see how much risk they will be taking by investing in a company's equity (i.e. buying stock in the public market). When you ...