Lets say FONR diluted shares by 4M by doing an offering at $7. That, and $6M from the balance sheet would take care of the $34M aquisition. At that point there would be 10M fully diluted(fd)shares. I will assume that this aquisition will double earnings. Under that assumption, and with 10M shares, FONR would post around $.25/qtr. Give the stock a PE of 10, and you have a $10 stock, a PE of 15, and a $15 stock.
However what if FONR can get a loan, or issue some debt at lets say 6.5% for the entire $34M. The interest expense would be about $550K/qtr, and if fd shares remains at 6M, the additional interest expense would decrease EPS by $.09/qtr. At the same time though, if earnings doubled from Dec qtr levels, they would post $.40+/qtr before the additonal interest, or $.31/qtr EPS after.
So it seems, whether FONR dilutes shares, or goes into debt to pay for the $34M aquisiton, they would still increase EPS, and have a much larger and stronger business. Personally at this point, till we get more info on the aquisition, I will only give the stock a $10 price target.