Reference no: EM132800957

Question - 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

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