Roscovis Corporation's December 31, 20X6, equity section follows:

Roscovis Corporation has annually paid all preferred dividends. There were no changes in paid-in capital during all of 20X6. The beginning retained earnings was \($5\),400,000. The ending balance of retained earnings is the result of \($3\),000,000 in net income and \($1\),000,000 in total dividends.
Determine the maximum price you would pay for a share of common stock in Roscovis if you have the following investment constraints:

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Stockholders' Equity Capital stock: Preferred stock, $100 par value, callable at 105,4%, cumulative, 200,000 shares authorized, 50,000 shares issued and outstanding Common stock, $2 par value, 1,000,000 shares authorized, 400,000 shares issued and outstanding Additional paid-in capital Paid-in capital in excess of par - preferred stock Paid-in capital in excess of par - common stock Total paid-in capital Retained earnings Total stockholders' equity $5,000,000 800,000 $5,800,000 $ 50,000 4,000,000 4,050,000 $ 9,850,000 7,400,000 $17,250,000