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Company A acquires company B. Company A has a P/E of 10, Company B has a P/E of 15x. Is the deal accretive or dilutive for company A?

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Acquirer P/E is 15x. Target P/E is 20x. In an all-stock deal, is this accretive or dilutive?Company A (P/E of 10x) acquires Company B (P/E of 3x) in an all-stock deal.Company A buys company B with 100% debt. Company B has P/E of 10x and Company A has P/E of 15x. What interest rate is required on the debt to make the deal dilutive? Assume a 40% tax rate.

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