Question

When 1,000 common shares are sold at $3.75 per share, Share Capital will:

a) increase $2,750
b) not be affected
c) increase $1,000
d) increase $3,750

Answer 1

The Share Capital will increase by $3,750 when 1,000 common shares are sold at $3.75 per share.

Step-by-step explanation:

When 1,000 common shares are sold at $3.75 per share, the Share Capital will increase by the product of the number of shares and the sale price per share. To calculate this, you multiply 1,000 shares by $3.75, which equals $3,750. Therefore, the correct answer is that Share Capital will increase $3,750.