Jesse Waltrip recently inherited USD 480,000 cash that he wishes to invest in the common stock of either the West Corporation or the East Corporation. Both corporations have manufactured the same types of products for five years. The stockholders' equity sections of the two corporations' latest balance sheets follow: WEST CORPORATION Stockholders' equity: Paid-in capital: Common stock$125 par value, 30,000 shares authorized, issued and outstanding $3,750,000 Retained earnings 3,450,000 Total stockholders' equity $7,200,000 EAST CORPORATION Stockholders' equity: Paid-in capital: Preferred stock8%, $500 par value, cumulative 4,000 shares authorized, issued and outstanding $2,000,000 Common stock$125 par value, 40,000 shares authorized, issued and outstanding 5,000,000 $7,000,000 Retained earnings 560,000 Total stockholders' equity $7,560,000 The West Corporation has paid a cash dividend of USD 6 per share each year since its creation; its common stock is currently selling for USD 590 per share. The East Corporation's common stock is currently selling for USD 480 per share. The current year's dividend and three prior years' dividends on the preferred stock are in arrears. The preferred stock has a liquidation value of USD 600 per share. a. What is the book value per share of the West Corporation common stock and the East Corporation common stock? Is book value the major determinant of market value of the stock? b. Based solely on the previous information, which investment would you recommend to Waltrip? Why?