Question: Redpath Limited purchased 25,000 call options during the year. The options give the company the right to buy its own common shares for $4 each.

Redpath Limited purchased 25,000 call options during the year. The options give the company the right to buy its own common shares for $4 each. The average market price during the year was $7 per share. Calculate the incremental shares outstanding for Redpath Limited.

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