RE:RE:RE:RE:RE:I was astoundedI look at share dilution in a more simple way. If the company can achieve return on equity in excess of their cost of equity, then share dilution actually creates economic value to the company. Ideally a company should favour debt to equity as the cost of debt is cheaper than equity. Alternatively, you can look at cash flow before changes in non cash working capital and compare that to the enterprise value of the acquired company. If this ratio is above their weighted average cost of capital then the acquisition will prove to be favourable to shareholders in the long run.