Smalley, Inc., has preferred and common stock outstanding as follows:
$5 preferred stock, 40,000 shares @ $100 par value . . . . . . . . . . . . . . . . . . . . . $4,000,000
Common stock, 500,000 shares at $10 par value . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000
Additional paid-in capital on common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,750,000
Calculate the book value on common stock, assuming preferred dividends are cumulative and are currently one year in arrears.