Jefferies Interview Question: If a firm with a lower P/E bu... | Glassdoor

Interview Question

Investment Banking Analyst Interview San Francisco, CA

If a firm with a lower P/E buys a firm with a high P/E, is

  it accretive or dilutive?

Interview Answer

1 Answer


Dilutive - firm is paying more per $1 of earnings than it is valued itself

Interview Candidate on Oct 3, 2011

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