hard20 pts · first answer countsvaluationm-and-a

Accretive but value-destroying

A deal is EPS-accretive in year 1. Why does that not prove the deal creates value for the buyer's shareholders?

A.Accretive deals always lower the buyer's share priceB.Accretion comes from P/E gaps, not from a fair price paidC.EPS cannot be compared from before to after a dealD.Value is created only by deals paid fully in cash

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Accretive but value-destroying

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