Home Depot announced an all-cash deal to acquire SRS Distrib…

Home Depot announced an all-cash deal to acquire SRS Distribution for $18.25Bn. The press release says “This transaction is expected to be dilutive to earnings-per-share (EPS) from a GAAP perspective due to amortization expense, but accretive from a cash EPS perspective in the first year, post-closing, excluding synergies.” What explains how this could be true? Choose all that apply.

If Madison Corp decided to do an all-cash deal instead of of…

If Madison Corp decided to do an all-cash deal instead of offering any stock, would that increase or decrease the Cash EPS accretion / dilution percentage in Year 3? Assume the deal is funded by increasing the Acquisition Debt, using the Target’s cash, but not using any of the Acquirer’s cash. All other assumptions remain the same.