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Learn/Merger models
LearnMerger models

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B Basic

  • Why companies buy, and how they pay7m
  • Accretion and dilutionPro10m
  • The P/E shortcut and the cost of each currencyPro8m

A Advanced

  • Purchase price allocation and goodwillPro10m
  • Synergies and break even synergiesPro9m
  • Deal structure, exchange ratios, and contributionPro9m
  • FlashcardsPro0/25
  • Basic quizPro80% passes
  • Advanced quizPro80% passes
  • Terms

The P/E shortcut and the cost of each currency

Compare what each form of payment costs in earnings with what the target earns per dollar of price. If the money is cheaper than the target's yield, the deal is accretive.

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