Let's now determine whether the transaction is accretive or dilutive for various transaction prices per TargetCo share assuming an all-stock transaction. The "Multiples Analysis" section is simply copied from the purchase price ratio analysis and repeated here because it is helpful to view the multiples alongside the accretion/dilution analysis.
In the all-stock scenario, the only cash outlay required is to pay advisory and other transaction fees. We assume that these fees cash be paid from existing cash balances and do not require the incurrence of acquisition debt. Therefore, the only interest income lost is due to the cash used to pay transaction fees.