Hoyt Corp.’s current balance sheet reports the following stockholders’ equity:

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

a. $7.75

b. $7.50

c. $7.25

d. $7.00