In 2023 Cisco acquired Splunk for $28B in cash. Assume Splunk has net income of $1B, the deal is funded with cash earning 5%, the tax rate is 20%, and Cisco has 4B shares outstanding. Is the deal accretive or dilutive, and by how much?

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4B. 12B.

In 2023 Cisco acquired Splunk for $28B in cash. Assume Splunk has net income of $1B, the deal is funded with cash earning 5%, the tax rate is 20%, and Cisco has 4B shares outstanding. Is the deal accretive or dilutive, and by how much?

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In 2023 Cisco acquired Splunk