At December 31, the stockholders equity of Magenta Company was as follow: Common stock, $4 par value: 1,000,000 shares issued

and 800,000 shares outstanding $3,200,000

Additional paid-in capital 800,000

Retained earnings 1,000,000

Treasury stock, (75,000 shares) (600,000)

Total stockholders equity $4,000,000

The book value per share of common stock is (rounded):

a. $4.00

b. $5.00

c. $5.75

d. $6.00