Upon exercising share options, the resulting increase in the additional paid-in capital would be equal to      a. The difference between the fair value of the shares and the par value of the shares, plus the fair value of the share options   b. The difference between the exercise price and the par value of the shares   c. The difference between the fair value of the shares and the par value of the shares   d. The difference between the exercise price and the par value of the shares, plus the fair value of the share options

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter11: Venture Capital Valuation Methods
Section11.5: Adjusting Vcscs For Incentive Ownership
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Upon exercising share options, the resulting increase in the additional paid-in capital would be equal to 
 
 
a. The difference between the fair value of the shares and the par value of the shares, plus the fair value of the share options
 
b. The difference between the exercise price and the par value of the shares
 
c. The difference between the fair value of the shares and the par value of the shares
 
d. The difference between the exercise price and the par value of the shares, plus the fair value of the share options
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