Use the same information as in BE17-19 and assume that Redpath also wrote put options that allow
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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To calculate the incremental shares outstanding for Redpath Limited we need to consider both the cal...View the full answer
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Related Book For 
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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