Reference no: EM132774436

McRib Enterprises reported the following information at December 31:

Preferred Stock, $5 par, 10,000 shares authorized   $42,000

Additional paid-in capital - preferred stock             10,500

Common stock, $1par, 6,000 shares authorized          4,600

Additional paid-in capital - common stock                9,700

Retained earnings                                              21,000

Treasury stock, at cost of $4 per share                    (4,000)

Total                                                                 $83,800

Problem 1: What is the average selling price for each share of preferred stock?

A. $4.00

B. $5.00

C. $6.50

D. $5.70

E. $6.25