22 arid 23 This Question: 1 pt 19 of 40 (18 complete)is Test: 40 pts possi Consider two firms, Bob Company and Cat Enterprises, both with earnings of $10 per share and 5 million shares outstanding. Cat is a mature company with few growth opportunities and a stock price of $25 per share. Bob is a new firm with much higher growth opportunities and a stock price of $40 per share. Assume Bob acquires Cat using its own stock and the takeover adds no value. In a perfect capital market, how many shares must Bob offer Cat's shareholders in exchange for their shares? O A. 0.3846 shares of new company after takeover for each share of Cat Enterprises O B. 1 share of new company after takeover for each share of Cat Enterprises O C. 1.6 shares of new company after takeover for each share of Cat Enterprises. O D. 0.625 shares of new company after takeover for each share of Cat Enterprises enc ter Click to select your answer 9:04 PM