Which of the following statements regarding efficiency gains is FALSE? Select one: O A. A justification that acquirers cite for paying a premium for a target is efficiency gains, which are often achieved through an elimination of duplication. O B. Although identifying poorly performing corporations is relatively easy, fixing them is another matter entirely. OC A chief executive of an inefficiently run corporation can be ousted by current shareholders voting to replace the board of directors, and in fact a large number of ineffective managers are replaced in this way. OD. Takeovers relying on the improvement of target management are difficult to complete, and post-takeover resistance to change can be great. Thus not all inefficiently run organisations are necessarily more efficient following a takeover. 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 S25 per share. Bob is a new firm with much higher growth opportunities and a share price of S40 per share. Assume Bob acquires Cat using its own shares 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? Select one: O A. 1 share of BobCat for each share of Cat Enterprises OB. 1.6 shares of BobCat company for each share of Cat Enterprises OC 0.3846 shares of BobCat company for each share of Cat Enterprises OD. 0.625 shares of BobCat company for each share of Cat Enterprises