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Move Ltd , a logistics company, is considering buying a smaller competitor in the same industry. The competitor, Links Ltd , has a current share

Move Ltd

,

a logistics company, is considering buying a smaller competitor in the same

industry. The competitor, Links Ltd

,

has a current share price of $

20 .

Move Ltd

s shares trade

at $

40 .

Determine the exchange ratio, based on market values, and discuss whether a counteroffer

based on an exchange ratio of

0.60

would be acceptable for Move Ltd

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