Hoyt Corp.’s current balance sheet reports the following stockholders’ equity:
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|
5% cumulative preferred stock, par value $100 per share; 2,500 shares issued and outstanding |
$250,000 |
|
Common stock, par value $3.50 per share; 100,000 shares issued and outstanding |
350,000 |
|
Additional paid-in capital in excess of par value of common stock |
125,000 |
|
Retained earnings |
300,000 |
Dividends in arrears on the preferred stock amount to $25,000. If Hoyt were to be liquidated, the preferred stockholders would receive par value plus a premium of $50,000. The book value per share of common stock is
- $7.75
- $7.50
- $7.25
- $7.00