Accretion / dilution

Whether an acquisition raises or lowers the buyer’s earnings per share.

Accretion / dilution in round numbers

Hypothetical: a buyer earns US$2.00 per share before a deal and US$2.10 afterward, an increase of US$0.10 per share. The comparison uses a consistent period, accounting basis and share-count method, including the deal’s effect on the number of shares. The deal is accretive on this basis.

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