How does 100% cash financing versus 100% stock financing affect accretion/dilution? Simplified mechanics.

Cash financing creates foregone interest income if balance-sheet cash is used, or interest expense if new debt is raised. Stock financing creates new shares and dilution to ownership. A cash / debt deal is accretive if target earnings after financing cost exceed the cost of cash / debt. A stock deal is accretive if the acquisition P/E is lower than the acquirer's trading P/E, before other adjustments.