Links Ltd, a logistics company, is considering buying a smaller competitor in the same industry & operates in the competitor Smartmove Ltd, is a more technologically advanced, but resoutca limited, company The management of Links Ltd feels that the company could incorporate the technology inartinove has developed to realise significant cost savings and better their customer exponence and therefore increase nivenue. The potential customer base acquard Nom Smartmove Lit would be incornequential to a company of Links Ltd's size and does not factor vito the decision Links Ltd wants to acture 100% of the mutstanding shares of Smartmove Ltd given the sensitivity of t of the technology to its business competiveness Liras Utt piano to use an issue of shares to t hunt the acquiton Links Ltd has 100m shares in issue currently trading af R10 aprece and EPS of R1.00 while Smartmove List has tom shares an intuo trading at R1 apece with EPS of RO 10 Synergistic eamings of 45m per year is expected post the merger
11) Determine the maximum exchange rabo based on an EPS valuation that Lariks Litt can offer without dituting its EPS taking synergistic benefits into account chouse the nearest option besow
A 070
D050
Catculas the exchange rater based on market valum and choose the nearest opton betwe
12the makertas an oder in the with the maximum axchange rate potet hom EPS and symegale hinuies and chrome fe nearest option besow
A Sh
5000m
1500%