Use the same information as in BE17-19 and assume that Redpath also wrote put options that allow the holder to

Question:

Use the same information as in BE17-19 and assume that Redpath also wrote put options that allow the holder to sell 25,000 of Redpath's shares to Redpath at $8 per share. Calculate the incremental shares outstanding for Redpath Limited.

Data From BE17-19:

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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Related Book For  answer-question

Intermediate Accounting

ISBN: 978-1119048541

11th Canadian edition Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

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Question Posted: September 08, 2023 03:30:43