How does a premium increase affect A/D: mechanics and typical sensitivity?

A higher premium increases purchase price. In a cash / debt deal, it increases cash used or debt raised, so interest expense or lost interest income rises. In a stock deal, it increases shares issued, creating more dilution. Higher premium can also increase goodwill but goodwill itself does not affect EPS unless impaired. Sensitivity is usually shown as offer premium versus EPS accretion / dilution.